The Emir of Kano, Sanusi Lamido Sanusi Friday kicked against plans by President Muhammadu Buhari to seek approval of the Senate on the $30 billion loan request.
The former Central Bank of Nigeria (CBN) Governor said even if the Senate gave their ascent to the loan, no country or global financial institutions would be willing to grant the loan request.
Sanusi during policy dialogue forum organised by the Savannah Centre for Diplomacy, Democracy and Development (SCDDD), in Abuja disclosed that for a nation that has five exchange rates, it would be difficult for such request to scale through.
He said the nation’s foreign exchange lacks credibility, thus federal government needed to embrace private sector investments as means to grow the economy out of recession.
Sanusi emphasised that oil cannot help the nation out of the current economic situation and it would “never make Nigeria ?rich.”
His words: ?”I can tell you for free, if the Senate today approve that we can borrow $30 billion, honestly, no one will lend us. 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 inter-bank 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.”
He noted that the country’s population continued to grow to over 40 million people since 2015, yet government found it hard to increase capital expenditure.
He warned on continuous dependence on China as good ally, adding that imports from China have scrapped the nation’s local industry.
“We trust China too much. We need to be very careful. They are killing our textile and other industries and yet selling to us,” he added.
However, he urged the federal government to reduce its debt service through greater loan concessionary.
He said the country in the past 15 years had been borrowing money to pay salaries, fuel subsidy and there are possibilities for the nation to keep borrowing in the next 15 years, as those borrowed were not channeled into health, power or infrastructural development.
Sanusi said the June 2016 forex reform should be implemented to unite the market through single transparent rate rather than creating four new rates.
“The Senate should support tax incentives and other benefits to encourage private sectors,” he added.