Nigeria’s Economy May Soon Collapse — Former CBN Governor, Sanusi

Muhammad Sanusi, a former governor of the Central Bank of Nigeria (CBN), has claimed that Nigeria’s economy is on the edge of collapse.

Sanusi made the remarks at the Kaduna Investment Summit, termed KadInvest 6.0, which took place recently.

Apart from the fact that Nigeria is having trouble producing oil, he claims that the commodity is now being rejected on the worldwide market.

The “goose laying the golden egg for Nigeria” is soon to die, according to the former Emir of Kano.

He stated that a knowledge-based economy was the way of the future, noting that Nigeria lagged behind many African countries in the innovation index.

He lamented the fact that, although having a smaller economy, Ghana invests more in education than Nigeria, which spends only 7% of its budget on education.

“Only eight of every 100 Nigerians who start primary school completes university.

“Globally, work is being redefined; 30 to 40 per cent of workers in developed economies will need to significantly upgrade their skills by 2030. And what are the major drivers of this redefinition? ICT and remote working, which we have seen even here with COVID-19.

“There is increased automation and artificial intelligence. Very soon, robots will take over work in most countries and those who would have jobs are those who operate the robots, manufacture the robots or service the robot.

“A few months ago, Germany was able to produce enough renewable energy for the entire country’s need. Today, we are having difficulties selling Nigerian oil. So, not only are we having problems producing, even when we produce, the market is not there.

“So, this is forcing a change, and for us a country that depends on oil, things need to change.”

He further stressed the need for skill creation for young people which would create an enabling environment for economic growth and development.

“Data is one of the most crucial support that can be given to entrepreneurs for innovation,” he said.

While calling on the government to encourage market access, he said, “If Kaduna state government continues with its e-government plan, it will be a big market itself and it will encourage investment which are all knowledge economy aspiration and a shift in government spending to match the priority.”

Sanusi congratulated Kaduna for the feat, describing the aspiration outlined in the plan as “critical” to address the country’s dwindling economy resulting from the over-dependence on oil revenue.

Meanwhile, the state government said it will be introducing ICT skills in the vocational institute and also in primary and secondary schools.