President Muhammadu Buhari at the Federal Executive Meeting on Wednesday 19 October 2016 in AbujaBy Simon Ateba/Lagos
The presidency in Nigeria has attacked the former central bank governor, now the Emir of Kano, Sanusi Lamido Sanusi, for arguing on Friday that with a battered economy that has five different exchange rates, no one will grant a loan to the administration of President Muhammadu Buhari.
Mr. Sanusi had on Friday condemned plans by President Buhari to borrow $29,960 billion for the country to build infrastructure at a time when oil revenues have dwindled.
Mr. Sanusi’s latest criticisms at a policy dialogue forum organised by Savannah Centre for Diplomacy, Democracy and Development in Abuja, were his second in about three months, after attacking Mr. Buhari in August and warning that his administration may end up like that of Goodluck Jonathan.
With Nigeria without money, Mr. Buhari in October forwarded a request to the National Assembly to approve external borrowing plan to fund projects across the country between 2016 and 2018, but Mr. Sanusi said on Friday that no one will grant Nigeria any loan now even if the Senate approved Mr. Buhari’s request.
He said: “I can tell you for free, if the Senate today approves 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 interbank 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.”
Mr. Sanusi’s criticisms seemed to focus on the exchange rates, Nigerian meagre reserves and the over reliance on China yo borrow money and execute projects.
However, on Saturday, the presidency reacted angrily, saying that Mr. Sanusi did not have his facts.
One of President Buhari’s spokesmen, Mr. Garba Shehu, said in a Facebook post that Mr. Sanusi does not have his facts to make informed comments.
He said: “With every respect to the Emir, you know he is my ruler,because I come from Kano.
“He doesn’t have his facts as far as those issues are concerned. The issue in CBN, that government has overdrawn its Central Consolidated Account is true, but the overdrawing is within limits.
“The overdraw does not exceed 1.5 trillion. It is incorrect to say, as he did that the account was overdrawn by 4.5 trillion.
“But even assuming that he was correct. This is a government that has money in excess the amount he mentioned in the Treasury Single Account, TSA. It is just like you, a bank customer operating two accounts, one in the red and the other, well funded to the point that it can at any time wipe the indebtedness on the other. Would any bank manager lose their sleep over this?
“This, I am told is what the IMF found at the CBN and they said it is perfectly normal.
“As for his opposition to the USD 30 billion loan, I’am aware that the Minister of Finance is responding to that.
“As a private citizen, I want to read his statement again. I thought that the borrowing is for projects that include the railway development in Kano, his own city”.