Lamido Sanusi, the former governor of the Central Bank of Nigeria, spoke at the Rivers State Economic & Investment Summit 2024 in Port Harcourt.
The former governor of the Central Bank of Nigeria, Lamido Sanusi, says Nigerians must be "realistic" and not expect President Bola Tinubu to solve the country's problems in one year.
Although Nigerians faced challenges before Mr Tinubu's inauguration last May, the continuous increases in transportation costs caused by the removal of fuel subsidy by the Tinubu administration have led to unprecedented inflation and economic hardship in Nigeria.
The interventions by both the federal and the state governments, to cushion the impact of the subsidy removal, have yet to create a significant impact on the country's large population.
Mr Sanusi, however, believes that the Tinubu administration's policies are necessary.
"At this point, it is important for us as Nigerians to be realistic," Mr Sanusi said on Thursday while delivering a keynote speech at the Rivers State Economic & Investment Summit 2024 in Port Harcourt, Rivers State.
"The mismanagement of the last 10 years will not be undone in six months or one year," Mr Sanusi added, referring to the economic hardship caused by the petrol subsidy removal.
"We need to understand that some of the difficult things will take time to work through the economy. It will take a little while for us to see a turnaround, but those decisions are absolutely necessary for us to save the economy," he said.
Mr Sanusi, an ally of President Tinubu, is a major proponent of the removal of subsidy on petrol. He has been consistent in defending the removal of petrol subsidy by Mr Tinubu's administration despite opposition by many Nigerians including workers unions.
"We always knew we would have to go through this process if we do not change course. And we have seen this movie in Zimbabwe, we have seen it in Venezuela, we have seen it in Argentina. It is a movie we don't want to be a part of."
The three countries Mr Sanusi mentioned have all experienced great social crises because of economic collapse.
Mr Sanusi, however, said he hoped that the hardship would be brief and that Nigeria would soon be put back on the path of economic growth.
Petrol Subsidy removal
President Tinubu announced during his inauguration on 29 May 2023 that the petrol subsidy was gone. This led to an increase in the price of the product from less than N200 per litre to over N600. The price increase, coupled with other government policies such as the floating of the naira, has led to huge increases in the prices of goods and services.
Despite the presidential announcement, however, the Nigerian government is still believed to be subsidising petrol with trillions of naira annually with the IMF saying the controversial reintroduction of subsidies by the Tinubu administration will cost Africa's largest crude producer an estimated N8.43 trillion of its projected N17.7 trillion of oil revenue in 2024.
Fubara's 'thoughtful and brave decision'
Mr Sanusi said it was a thoughtful and brave decision for Governor Siminalayi Fubara's administration to put together the Rivers Economic & Investment Summit 2024, and that he regarded it as an "absolute honour" to be a keynote speaker.
"At this moment in our history when the country is desperate to chart a new course in economic thinking and opting for a paradigm shift that seeks to harness our vast potentials and propel us towards sustainable growth and prosperity, the decision to centre governance around economic development through investment promotion is a very thoughtful and brave decision by the government of Rivers State.
"This is more so because the reform of an economy, whether of the state or of the federation at large, requires difficult decisions. It involves policies that may be painful and unpopular which usually don't go down well with politicians who need reelection. But that is the only way to guarantee a better future for the people," Mr Sanusi said.
The former CBN governor said Rivers, with its arable land, abundant oil and water resources, and strategic location has the potential to become an investor's paradise and a great economy in West Africa if the right decisions and actions are taken.
"The recent boom in mechanised agriculture, international trade, transportation, tourism, real estate and ICT that have been witnessed in the state is evidence that Rivers is ripe for investment and growth," he said.
Mr Sanusi said Rivers, with its oil resources, has contributed immensely to Nigeria's economy, but that having oil or any natural resource is not enough for economic development.
"I have said it over and over again that if we were to dig out all the oil that is under Nigeria's soil today and sell it and share the money among all Nigerians, we will at best be a lower middle-income country. So oil is a resource, but it is not enough to make us a wealthy country.
"To achieve development, it is imperative that we recognise the need to take specific steps that transcend natural resources, to diversify and institutionalise foundational economic frameworks."
He called on the political and business leaders, and residents of Rivers State to embrace innovation and reforms that could make the state attractive for investment that would ultimately bring about a prosperous future.
Mr Sanusi left the venue of the event immediately after his presentation. PREMIUM TIMES reported that shortly after the event, the Kano State government announced that he had been reinstated as the Emir of Kano, a position from which he was removed in 2020.
What we're doing to turn things around - Fubara
Governor Fubara, on Wednesday, told the audience at the summit that his administration, two weeks ago, launched a N4 billion matching fund loan scheme with the Bank of Industry Limited for small, micro, and medium-scale businesses to drive financial inclusion and enhance growth and development.
The loan scheme, he said, would grow Rivers' economy, and create jobs and wealth for the people.
The governor said his administration, which will be one year old on 29 May, has approved the establishment of the Rivers State Investment Promotion Agency to provide one-stop-shop investment services and facilitation to investors in the State.
"In the first year of our administration, we received an appreciable number of expressions of interest from local and foreign investors to invest in diverse sectors of our economy, including agriculture, real estate, power generation, and manufacturing.
"We have signed a development agreement with TAF Nigeria Limited for the construction of 20,000 mixed houses in the Greater Port Harcourt City. We signed another agreement with Gosh Nigeria Limited for the construction of an international spare parts market. The state government provided hundreds of land as its equity and work has since started at both sites."
Continuing, Mr Fubara said, "Apache Aluminium LLC of America has started the acquisition of land to establish a multi-billion-naira aluminium rolling mill (plant) in the Ogoni axis of Rivers.
"We have opened discussions with Imagine Adama Agricultural and Technology of Israel to support the State in developing our huge agricultural potential, including reviving abandoned agricultural projects and infrastructures such as the Rivers Songhai Farm, the School-to-land farms, fish farms, feed mills, oil palm estates and poultry farms across the State. We have earmarked about 10 million USD for this project this fiscal year."
New city, mangrove forest conservation
Governor Fubara said the Rivers State Executive Council, last week, approved a proposal to build a new city - New Port City - in the state on about 1000 hectares of land in collaboration with the Greater Port Harcourt City Authority.
The proposal for the new city, according to the governor, was presented by Rainbow Heritage Group, a real estate firm.
"We have also concluded arrangements for the signing of a Memorandum of Understanding with Planet One Holding Limited of Dubai for a 10,000,000 USD Mangrove Forests Conservation and Carbon Capture Project under the Private Public Partnership arrangement," the governor said.
"As a state, Rivers State is blessed with enormous human and natural resources, including oil and gas, fertile soil, solid minerals, and an extensive coastline with great water bodies.
"The state is the centre-point of the oil and gas industry in West Africa. We account for over 40 per cent of crude oil production onshore in the country and 100 per cent of liquefied gas that the country exports.
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"The state also is the second largest economy in Nigeria, and with a nominal GDP of over $28.4 billion, the state's economy ranks in the top 25 economies in Africa comparable to countries like Botswana, Rwanda, and Gabon.
"The state has a relatively robust infrastructure, including good roads, two seaports, an international airport, and a free trade zone, and with a population of over seven million indigenously diverse, educated, highly hospitable people, and a business-friendly environment, Rivers State stands at the centre of diverse economic opportunities."
Investment opportunities
Mr Fubara spoke of the investment opportunities in Rivers and appealed to investors to come to the state.
He said his administration has prioritised peace and security and has focused on growing the Rivers' economy through partnerships and collaborations in line with the belief that it is the private sector, not the state government, that grows the economy, creates jobs, and guarantees wealth and prosperity for the people.
"Rivers State provides several investment opportunities across diverse sectors of our economy, including oil and gas, agriculture and agro-processing, manufacturing, hospitality and tourism, education, ICT, and healthcare, infrastructure development, glass products, and garments production, and power generation and transmission, to mention a few.
"With over 40 per cent of fertile cultivable landmass, Rivers State has the potential to make a significant contribution to national food security with commercial investments in mechanised agriculture and the agro-processing industrial value chains.
"Several state-owned but moribund companies, farmlands, and business infrastructure, including oil palm estates, rubber plantations, poultry, and fish farms are available for interested private investors to take over and revitalize. Additionally, Rivers State presents lucrative opportunities for the commercial production of highly valued cash crops for the export market," the governor said.
A former governor of Cross River State, Donald Duke, was the chairperson of the two-day summit.
