Buhari Media Support Group, BMSG, has cautioned the Emir of Kano, Muhammadu Sanusi II, against “being constantly unduly flippant in order not to bring disrespect to the stool he occupies”.
The Emir of Kano, Lamido Sanusi, last Friday condemned plans by President Muhammadu Buhari to borrow $29,960 billion for the country.
Mr. Sanusi, a former governor of the Central Bank of Nigeria, said it would be difficult for the loan to be granted because Nigeria has five exchange rates.
He spoke at a policy dialogue forum organised by Savannah Centre for Diplomacy, Democracy and Development in Abuja.
Mr. Buhari had in October forwarded a request to the National Assembly to approve external borrowing plan to fund projects across the country between 2016 and 2018.
It is the second time in three months that Mr. Sanusi is criticising Mr. Buhari’s economic policy.
In August, he had sternly criticised the president’s economic policy, saying his government may end up like that of the former President Goodluck Jonathan.
Mr. Sanusi argued that even if the National Assembly eventually grants the request, no global financial institution would give such loan.
“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 borrow you when they don’t know your exact reserve and exchange rate? I want to see who will borrow 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, Mr. Sanusi said the federal government should embrace private sector investments as a way out of its recession.
The monarch said oil revenue cannot bring the country out of its present economic downturn or made it rich.
He expressed disappointment that government could not increase capital expenditure even though the country’s population continued to grow to over 40 million people since 2015.
Mr. 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.
Mr. 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.
“The Senate should support tax incentives and other benefits to encourage the private sector,” he said
But Buhari Media Support Group warned Muhammadu Sanusi II, on the need “to exercise restraint in his frequent attacks on the policies of the Federal Government in order not to give cynics the wrong signal to undermine the government’s efforts towards finding solutions to the myriad of problems facing the country”.
Chairman of the BMSG, MalIam Muhammad Labbo, gave the charge in a statement issued Sunday in Abuja. He described the latest attack regarding government’s proposal to procure a multi-billion dollar loan by Emir Sanusi as very unfortunate and disheartening.
Labbo said, “as a highly respected public figure, the Emir should not engage in street tactics to make his point because the doors to the president’s office are widely open to him to offer his advice for the betterment of the country and its people”.
According to the statement, “the Emir’s open and hostile posture to the policies of the government could be misunderstood, thereby dividing the people. “…since the Emir is not an opposition political figure, his hostile attacks are likely to be interpreted as political, thereby compromising the neutrality of his office.
Labbo said as a friend of the president, “Emir Sanusi should not give ammo to the President’s opponents to undermine the efforts of the government in the implementation of its change agenda.
“He should rather, subscribe to the age-old code of ethics of the traditional institution where emirs are mostly seen and hardly heard, instead of being constantly unduly flippant in order not to bring disrespect to the stool he occupies”.