In a startling revelation that has sent shockwaves through Nigeria's economic circles, former Central Bank Governor Lamido Sanusi has pinpointed the delayed removal of fuel subsidies as the primary catalyst behind the country's current economic turmoil.
The Kaduna Declaration
Speaking at the prestigious launch of Professor Mike Ikhariale's book 'The Nigerian Nation: Some Essential Issues' in Kaduna, Sanusi didn't mince words about the consequences of postponing critical economic decisions.
'The economic hardship we're experiencing today is the direct result of not removing fuel subsidies when we had the opportunity,' Sanusi declared to an attentive audience of policymakers, academics, and business leaders.
Timing is Everything in Economic Reform
The former CBN chief emphasized that while the current administration eventually made the tough decision to eliminate subsidies, the delay created a perfect storm of economic challenges that could have been mitigated with earlier action.
'When you postpone necessary economic reforms, you don't avoid the pain—you merely defer it, often at a much higher cost to the populace,' Sanusi explained with the authority of someone who has navigated Nigeria's complex economic landscape for decades.
The Domino Effect of Delayed Action
Sanusi outlined how the subsidy delay created a cascade of economic problems:
- Massive drain on national resources that could have been allocated to critical infrastructure
- Increased national debt burden as the government borrowed to maintain unsustainable subsidies
- Market distortions that discouraged private investment in the downstream petroleum sector
- Reduced foreign exchange reserves as subsidy payments consumed dollar resources
A Veteran's Perspective on Economic Management
Drawing from his extensive experience as both CBN Governor and Emir of Kano, Sanusi stressed that effective economic management requires courageous decision-making and timely implementation of necessary reforms, even when they're politically challenging.
'Leadership means making tough choices for long-term benefits, rather than opting for short-term popularity that leads to long-term suffering,' he stated, drawing applause from the gathered intellectuals and professionals.
The Way Forward
While acknowledging the current economic difficulties facing ordinary Nigerians, Sanusi maintained that the subsidy removal, though belated, was a necessary step toward economic recovery and sustainable growth.
'The path to economic stability is never easy, but facing hard truths and implementing necessary reforms is the only way to build a prosperous future for all Nigerians,' he concluded, offering a note of cautious optimism amid the prevailing economic challenges.
