Neglect of real sector ruined Nigeria, says Sanusi
Friday, 06 August 2010 00:00 By Babatola Adeyemi

GOVERNOR of Central Bank of Nigeria (CBN), Malam Sanusi Lamido Sanusi, yesterday traced the country’s descent to economic oblivion to the neglect of the real sector and the adoption of the Structural Adjustment Programme (SAP) by the Federal Government in 1986.
He said yesterday in Lagos that SAP pauperised most Nigerians, de-industrialised the country and led to mass loss of jobs by the citizens.

According to Sanusi, “I opposed SAP in the 80s as a junior officer in the bank at that time, because it was a blueprint for de-industrialisation and it impoverished many people. For every one Nigeria that was a billionaire through SAP, there were tens of thousands who were without jobs.”
Also, the President of Institute for Chartered Accountants of Nigeria (ICAN), Mr. Sebastine Owuama has urged the government to build sufficient capacity to drive the economy in the next 15 years.

Owuama, who spoke yesterday in Port Harcourt, Rivers State, pointed out that Nigeria was lagging behind its developing partners and urged spirited actions to achieve economic boom by 2015. At the 38th yearly general meeting of the Manufacturers Association of Nigeria (MAN) in Lagos, Sanusi told his audience that “we are all guilty” of what had become of the economy in the last two or three decades.
To redress the situation, Sanusi urged the government to bail out the infrastructure, create level playing ground for manufacturers as well as shield them from international competitors.
He also charged Nigerians to contribute positively in their respective spheres in furtherance of the country’s quest for economic development.

Sanusi also used the occasion to canvass the stakeholders’ support for the Director-General of the Securities and Exchange Commission (SEC), Arunma Oteh, whom he said was set to cleanse the Nigerian Stock Exchange (NSE).
Indeed, the apex bank governor identified tasks for the government, his host and Nigerians generally, which he said would determine the country’s economic fortunes.
Specifically, he stressed that the imperative of appropriate policies and initiatives and the provision of infrastructure by the government could not be over-emphasised.

According to him, government must introduce policies that would fast-track economic growth.
He noted that the country’s Gross Domestic Product (GDP) is now about six to seven per cent yearly, but asked: “How much of our GDP growth is due to deliberate government policy?
“We are the number one cassava producer in the world, but there is no starch industry; we export gas, but don’t produce our own power; we have cotton, but our textile industry is in shambles and we have resources that are the basis for industrial power, but we don’t use them.”

Sanusi, who spoke on: “Enhancing the flow of credit to the manufacturing sector in Nigeria through the on-going banking sector reform, stressed that “without building Nigeria’s manufacturing base, the country has no future.”
He therefore canvassed the protection of local manufacturers from international competitors. According to him, “it is the responsibility of domestic policy to protect local production against foreign competition since a level playing field is only good for equal teams. This is the fundamental problem.”

The CBN boss, who also lamented that the manufacturing sector contributed only four per cent to the country’s GDP, urged that identified constraints to the sector, including power, vocational skills, other critical infrastructure and inappropriate tariff regime be addressed.

“I am pleased to note that government is taking steps to address these issues, and if these are implemented with diligence, then the bottlenecks facing manufacturing will be removed and banks can finally grow loans to manufacturing at favourable rates of interest and without undue risk,” he said.
While admitting that government alone could not solve Nigeria’s infrastructural challenges, Sanusi said government has the responsibility to provide incentives to investors and create an environment that would boost investment in power and other infrastructure.

“Government has no enough money to meet our needs for power and other infrastructure, but there is enough money in the world for both with the right incentives,” he stated.
To the manufacturers, he assured that the recent disbursement of N130.2 billion to 317 eligible projects of the N200 billion intervention fund provided to manufacturers was the first tranche and that more operators would benefit.

“We expect more applications from the managing agent (Bank of Industry - BoI) soon in order to complete the second tranche. We expect the CBN intervention in medium to long term to reduce operating costs of manufacturers, increase profit, promote employment and generally make the manufacturing sub-sector more attractive for bank financing.”

He, therefore, urged the manufacturers to be more active and pro-active. Lamenting the prevailing focus on which zone should produce the next president, rather than dwelling on issues like acquisition of skills to aid industrialisation, education and other policy issues, he advised: “MAN should demand and contribute to a process in which the political system helps to produce people that will support production.”

He added: “Another challenge for MAN is to see how to strategically network with those that will help them to achieve their objectives. You must partner with the most critical institutions and individuals that can help you.”
The apex bank boss also lauded the reform, which he said, SEC had commenced in the NSE and asked the manufacturers to lend their support to it.

Nigerians, Sanusi stated, must love the country enough to patronise made-in-Nigeria products, to help local manufacturers. “If they don’t do this willingly, the country would suffer for it,” he said.
Owuama said ICAN as a professional body was worried about what was happening in the NSE even as he described corruption as an evil that eats up the fabrics of the nation.
“The issue of corruption is of great concern to everybody including ICAN. We are not unmindful of this evil trend because it jeopardises the economy and that is why we made it clear that if any ICAN member is found guilty of corruption, the person would be subjected to investigation and if found guilty, he would be sanctioned.”

http://www.guardiannewsngr.com/index.php?option=com_content&view=article&id=19215:neglect-of-real-sector-ruined-nigeria-says-sanusi&catid=1:national&Itemid=559

Thanks!
[img]http://2.s07.flagcounter.com/count/DymW/bg=FFFFFF/txt=FFFFFF/border=FFFFFF/columns=1/maxflags=1/viewers=3/labels=0/[/img][img]http://s07.flagcounter.com/count/DymW/bg=FFFFFF/txt=FFFFFF/border=FFFFFF/columns=1/maxflags=1/viewers=3/labels=0/[/img][img]http://2.s04.flagcounter.com/count/3DIf/bg=FFFFFF/txt=FFFFFF/border=FFFFFF/columns=1/maxflags=1/viewers=3/labels=0/[/img]

This Sanusi opens his mouth too much.
He should know when and where to say such things

blank:

This Sanusi opens his mouth too much.
He should know when and where to say such things

Was that really an inappropriate forum - addressing members of MAN?

@blank Where are when should he have said that?
That was an informative and educating speech.
Think before you speak.

@blank Where and when should he have said that?
That was an informative and educating speech.
Think before you speak.

@Blank he should have address this topic in your bedroom right , LOOLx

yeah!!! we all know already


the point is that he starved businesses of funds,

most of the advanced countries run basically on risk management

he has discouraged all form of risk


strangely risk assets yields the most profit

kobikwelu:

yeah!!! we all know already


the point is that he starved businesses of funds,

most of the advanced countries run basically on risk management

he has discouraged all form of risk


strangely risk assets yields the most profit

and they have also yielded the largest jump in the level of unemployment in the US since the great depression
And did he really starve business of fund? He provided N620b to some banks
and he is giving N500b to the real sector

^^^^^^


give or take,

you cannot take away the merits of a risk asset

its called the duality of nature, the gift and the curse,

Sanusi is a true technocrat. you guys are quick to say he has discouraged risk taking. that's not true. he discourages reckless risk.what he's doing to support the banks at the moment, it's almost criminal. he's been using tax payers money to support these crooks without recourse to the provisions of the constitution. if the senators know their jobs, he should probably be behind bars right now. Banks are taking money at 6% they're giving out at 22. it's unprecedented. just so the banks can stay afloat. he should know he's mainly financing the lifestyles of the bankers though. all these incentives will never trickle down to the man in the street.

I just like this guy,he's never afraid to open his mouth

Well, I don't like the guy. He is always talking and most times it is just biased rubbish coated with high sounding economic terms.

So even if he is saying something that make sense, I can't listen to him.

Very educative Sanusi.

Medicine after death.He should shut his trap

I am sorry if i was misunderstood.
I just feel that he talks too much for a CBN governor.
Seems he doesn't understand dat he can derail the economy any time he makes unguarded statements.

blank:

I am sorry if i was misunderstood.
I just feel that he talks too much for a CBN governor.
Seems he doesn't understand dat he can derail the economy any time he makes unguarded statements.

And I guess what he is saying now is unguarded statement to you ehn?

@post and posters

I am warning Sanusi, he should never talk smile or even shake anyone in public because he is the governor.

em sorry I forgot if he dares farts or goofs in public he should be sacked.

Ibime:

And I guess what he is saying now is unguarded statement to you ehn?

Yes it is.
I would expect him to put things into motion that would curb it.
What benefit is it to the country to speak as he just has?
Rather, it will have the reverse effect on the real sector.
I don't want to go into macroeconomics but everyone knows the role of the CBN governor to create such an enabling environment.

Sanusi is a true technocrat. you guys are quick to say he has discouraged risk taking. that's not true. he discourages reckless risk.what he's doing to support the banks at the moment, it's almost criminal. he's been using tax payers money to support these crooks without recourse to the provisions of the constitution. if the senators know their jobs, he should probably be behind bars right now. Banks are taking money at 6% they're giving out at 22. it's unprecedented. just so the banks can stay afloat. he should know he's mainly financing the lifestyles of the bankers though. all these incentives will never trickle down to the man in the street.

which kin technocrat

he messed up and he is trying to cover up his hynie

what do u mean by reckless risk??

most companies cant even meetup to their in house operating cost just because no body is ready to stick out his/her neck,

companies now go out of the shores of this country to obtain financing

The CBN boss, who also lamented that the manufacturing sector contributed only four per cent to the country’s GDP, urged that identified constraints to the sector, including power, vocational skills, other critical infrastructure and inappropriate tariff regime be addressed


This is a country destined for destruction and  has no chance of crawling let alone walking

so what did he do BEFORE being the CBN gorvernor to sustain the real sector?
that is the question the journalists should be asking him on behalf of Nigerians.
I guess we are in Nigeria where everyone is a NATO- No Action, Talk Only and we shift responsibility at all levels. If good, na God do am, if bad na devil push me to do it.

blank:

I don't want to go into macroeconomics but everyone knows the role of the CBN governor to create such an enabling environment.

Really?

I must have skipped that lesson in MacroEcons class.

All Sanusi haters pls quit the hate, the guy is doing a great job.

He has said the truth again, how do we develop when manufaturing only contributes 4% to GDP, he said it "we are all guilty" including himself.

What more can he do, sacked reckless bank executhieves and bailed the banks out to save innocent depositors and ill educated and advised investors, eased out corrupt bank owners who believed that depositors funds are their private property.

The time has come for real banking!!!

SAP or no SAP the goodnews today is any Nigerian company can make a fortune by harnessing the power of SMS messaging to broadcast their business nationwide. This company 080 advertising have helped many Nigerian businesses succeed. Incase your business need to boost your customer base nationwide then go to their website http://www.080advertising.com

Why is every leader in Nigeria excusing himself or herself from the entire blame? Who will then solve the problem?

hmmm, maybe not[img]http://s07.flagcounter.com/count/DymW/bg=ffffff/txt=ffffff/border=ffffff/columns=1/maxflags=1/viewers=3/labels=0/[/img]

i'm not an expert when it comes to talking about the economy but one thing i have noticed about Sanusi is that he talks too much, he should stop doing the talks and do the walks

Sanusi should talk as much as he can, All you guys criticizing his noise making will prefer if he acted like the ministers etc , who sit in there high tables all year, Nigeria is in shambles at the moment and something needs to be done about the state of things in the country - and until someone in government starts to make changes and improve things, every comment, statements and news forums etc is welcome. sanusi is not in the government - so all he has is his mouth so let him use it to worry those who are in position to make changes but instead they remain relaxed and eating our money, ! I LOOK FORWARD TO HEARING MORE FROM SANUSI - A MAN WHO WANTS SOMETHIONG DONE ABOUT THE DAILY SUFFERING OF THE ORDINARY NIGERIANS ON THE STREETS