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His Highness, Muhammad Sanusi II, Emir of Kano presented a paper titled, “Plan to Restore Confidence, Direction & Growth” where he addressed a wide range of issues regarding the management of the economy by the Buhari led government.
A specific charged he laid was that the “The CBN-FGN relationship is no longer independent. In fact one could argue their relationship has become unhealthy. CBN claims on the FGN now top N4.7trn – equal to almost 50% of the FGN’s total domestic debts. This is a clear violation of the Central Bank Act of 2007 (Section 38.2) which caps advances to the FGN at 5% of last year’s revenues. The overdrafts alone are equal to more than 10x that prescribed limit, and are growing every month. Has the CBN become the government’s lender of last – or first – resort?“. He backed up his assertion of N4.7trn with the Infographic below.
Emir Sanusi said the focus should be on reducing FGN debt service through greater concessional borrowing rather than increasing its spending through CBN financing.
(Inforgraphic is as presented by Sanusi Lamido Sanusi)
