The former Governor of the Central Bank of Nigeria, Muhammed Sanusi II has said that Nigeria is the only oil-producing nation that does not get the benefit of rising oil prices.
Sanusi, who disclosed this in an interview on Arise TV, explained that all the proceeds Nigeria makes when crude oil price goes up is lost as she pays subsidy for importing refined petroleum products.
According to him, government’s dependence on oil by successive administrations has impacted the economy negatively.
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He said, “Over 90% of what government earns comes from the oil sector and oil is a commodity, the price goes up and down. We set up the country to suffer.
“First of all, you will fix a price for petroleum product even though you are not refining your petroleum products. How can you fix a price for a product you do not produce? We produce crude oil but the price we fixed was for refined petroleum product.”
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Alternative power source
The immediate past Emir of Kano explained that the nation can develop an interest in producing solar panels using sands, iron bars and other resources at the nation’s disposal. He said such an effort will provide electricity, create jobs, and boost the economy.
Thumbs up for government
Sanusi lauded the efforts of the President Muhammadu Buhari administration for auditing and publishing NNPC account for the first time in two decades.
“Now, we need to look at those accounts and ask questions so that more and more of that money won’t just be drained but rather get to the central bank. The central bank has the foreign exchange reserves to protect the currency,” he said.
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On recent ban on the importation of goods that are locally produced, he tasked the Ministry of Trade to support the CBN on compliance.
According to him, the Ministry of Trade needs to work on compliance and the nation should look into how to work with other African countries.