Sanusi Blasts President Buhari Over $30 Billion Loan Request

By Ikenga Chronicles December 3, 2016

Barely one week  after former President Olusegun Obasanjo dropped major bombshell against the presidency, former Central Bank Of Nigeria(CBN) Governor and Emir Of Kano, Lamido Sanusi, have started mobilising the north against President Muhammadu Buhari’s borrowing plan.

This came against the backdrop of a request forwarded to the National Assembly to approve external borrowing plan to fund projects across the states.

Sanusi who spoke on Friday, December 2 at a policy dialogue forum organized by Savannah Centre for Diplomacy, Democracy and Development in Abuja condemned plans by Buhari to borrow $29,960 billion for the country.

Recall that In August, Sanusi had criticised the president’s economic policy, saying his government may end up like that of the former President Goodluck Jonathan.

While speaking at the forum on Friday, Sanusi called on the National Assembly not to approve the request.

“I can tell you for free, if the Senate today approves that we can borrow $30 billion, honestly, no one will lend us” he said.

“It should be approved and I will like to see how you will go to the international market with an economy that has five exchange rates.”

“There is one rate for petroleum marketers, there is interbank rate, there is another for money market operators such as western union, money gram, there is bureau de change rate and there is a special rate you get when you call the CBN for a transaction.”

“So who will lend you when they don’t know your exact reserve and exchange rate? I want to see who will lend you money when the Niger Delta bombing of oil is there ‎when the main source of the loan repayment is oil.”

Stating that Nigeria’s foreign exchange rates lacked credibility, Sanusi said the Federal Government should embrace private sector investments as a way out of its recession.

Sanusi also warned the government against continuous dependence on China.

According to him, imports from China have destroyed Nigeria’s local industry.

He said, “We trust China too much. We need to be very careful. They are killing our textile and other industries and yet selling to us.”

The former CBN boss called on the Federal Government to reduce its debt service through greater loan concession.

He lamented that the nation had been borrowing money in the last 15 years to pay salaries.

According to him, there are clear possibilities that the situation would continue because the monies borrowed were not being channeled into health, power or infrastructural development.

Sanusi called for the implementation of the June 2016 forex reform to unite the market through a single transparent rate rather than creating four new rates.

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