The 16th Emir of Kano, Muhammadu Sanusi II and former Stanbic IBTC Holdings Chairman, Atedo Peterside, disagreed yesterday on President Bola Ahmed Tinubu’s administration’s economic performance.
While Sanusi said the administration deserved some flowers for a number of successes, including raising the nation’s economic growth from 0.9 per cent on May 29, 2023, to 4.5 per cent, Peterside argued that the figure was not worthy of celebration.
The duo spoke at the Oxford Global Think Tank Leadership Conference, themed ‘Leadership for a Prosperous Future ‘ in Abuja.
Other speakers at the event convened by a former Director-General of the Securities and Exchange Commission (SEC), Arunma Oteh,also examined Nigeria’s economic challenges, the need for stronger institutions, investment mobilisation, technological innovation and human capital development.
The speakers included Former President of the African Development Bank (AfDB) Akinwumi Adesina and Minister of Communications, Innovation and Digital Economy Bosun Tijani.
All the speakers had a convergence: sustenance of economic reform.
Nigeria’s challenge is to build an economy in which investment, technology, human capital and accountable institutions combine to create jobs, raise productivity and improve citizens’ welfare.
They said achieving this would require more than isolated policy announcements. It would depend on sustained reforms, a stronger private sector, effective public institutions and deliberate investment in the capabilities of Nigerians.
‘Give government credit’
Although Sanusi admitted that it was not yet Uhuru, he said the Tinubu administration should be acknowledged for what it had achieved.
The one-time Central Bank of Nigeria (CBN) governor listed the decline in inflation from 30 per cent to 14.5 per cent and foreign reserves from nearly negative to $55 billion as some of the other that the government deserve credit.
His words: ‘I’m not of the view that we have reached where we should, but I also think it’s only fair that we recognise the good things we have done.
‘Moving from an average growth rate of 0.9 per cent to 4.5 per cent is progress. Moving from inflation of over 30 per cent to 14.5 per cent is also progress.
”Moving from a point where, in 1999, Central Bank reserves were nearly negative to where we now have reserves of $55 billion is progress. We should give the government credit for that.’
Beyond GDP
Sanusi said economic performance should be measured not only by GDP growth, foreign reserves and other macroeconomic indicators, but also by improvements in education, healthcare, nutrition, employment, household incomes and poverty reduction.
He cautioned against over-reliance on portfolio inflows, which he said are volatile and driven by high interest rates and attractive short-term returns.
Sustainable progress, according to him, requires structural reforms beyond subsidy removal and changes in foreign exchange policy.
Sanusi called for investment in infrastructure, stronger accountability and transparency, reliable economic data, and policies that expand productive opportunities across the country.
He said Nigeria could attain 10 per cent growth ‘if we focus on some areas like power, technology and agriculture.”
‘Even the President’s campaign promised this: power, technology, agricultural productivity,’ he said.
‘If you increase agricultural productivity and invest in technology, many businesses will have something to grow on.’
The emir, who was managing director of First Bank of Nigeria, noted that resources are limited because ‘every time you take $10 billion out to build a road, that’s $10 billion out of electricity and $10 billion out of Agriculture.”
”These are choices that should be driven by priorities that have an impact on people. We can have beautiful projects that have little impact,’ Sanusi advised.
Stating that Nigeria needs ”ideological constitution” because much remains to be done, he asked rhetorically: ‘Are we ready to change Nigeria from a rentier state to a capitalist state?
”If you look at Karl Marx, a period of primitive accumulation leads to capitalism. We don’t talk about that today; we celebrate the government.’
Downstream sector
The emir said the local refinery faces one hurdle after another.
According to him, some people want the market opened to cheap imported petroleum products to ‘kill’ the refinery, not out of concern for Nigerians, but because it disrupts a business model of ‘rent-seeking, exploitation and theft’ that has enriched many.
He asked whether Nigeria would support local investors and anyone ready to invest in the country, or those who profit from rent-seeking.
Women in governance
The former CBN governor also called for greater inclusion of women in elective and appointive positions.
‘If you don’t have women in policymaking, as ministers, senators and representatives, how do you address issues of human development?’ he asked.
‘These are issues of maternal health, malnutrition, child education and early childhood development. Women understand and live with these issues. We need to consciously bring women to the centre of governance and decision-making if we want to get the best out of our country.’
But Peterside took a different position on the Tinubu administration’s economic performance, especially on the 4.5 growth rate.
The StanbicIBTC co-founder said Nigeria should not be satisfied with the growth rate when it needs 10 per cent to create enough jobs, expand businesses and improve living standards.
He identified weak investment as a major constraint, stating that the required growth would be unattainable without a significant increase in investment as a share of GDP.
Peterside, who is also the founder of Anap Foundation, blamed political patronage, corruption, regulatory harassment and the absence of a level playing field for discouraging investors and weakening the private sector.
Small and medium-sized enterprises, according to him, are often subjected to arbitrary demands and harassment by regulators, making it difficult for them to operate, expand and create jobs.
He warned that public procurement had become a major channel for diverting public resources, with inflated contract costs eroding the value of government spending.
Peterside described the abuse of procurement as a form of legalised theft, saying money meant for infrastructure and public services was being lost through inflated contracts and corrupt practices.
He added that Nigeria must confront corruption and state capture to attract the scale of domestic and foreign investment needed to transform the economy.
He also called for fair implementation of reforms, warning that citizens should not bear the entire burden of adjustment while the politically connected remained insulated.
The Rivers State-born investment banker urged the government to strengthen institutions, protect businesses from arbitrary interference, and ensure that appointments and the allocation of national resources were guided by merit and the national interest.
Former AfDB President Adesina said Africa’s growing young population should be treated as an economic asset, not a burden.
He warned that population growth alone do not guarantee prosperity.
The real advantage, he said, lay in building young people’s capabilities and connecting them to productive opportunities.
Adesina noted that Africa is projected to account for about a quarter of the world’s population by 2050, with young people making up a substantial share.
The trend, he said, is an enormous opportunity but could become a source of economic and social pressure if governments failed to invest adequately in education, healthcare, nutrition, technical skills and access to finance.
He advised that young Africans must be equipped not only to seek jobs but also to create businesses, develop technologies and solve the continent’s challenges.
Adesina stressed the need to expand digital and artificial intelligence (AI) capabilities so that Africa did not remain a mere consumer of technologies developed elsewhere, and called for stronger investment in human capital, affordable financing and infrastructure.
Communications, Innovation and Digital Economy Minister Tijani said Nigeria’s ability to convert knowledge and technology into productive economic activity would determine its future prosperity.
He said natural resources alone could not guarantee national wealth.
Prosperity, he explained, depends on how effectively a country applies knowledge, technology and technical expertise to the resources available to it.
Convener of the conference, Oteh, called for an ecosystem approach to development, arguing that sustainable growth required governments, businesses, investors, financial institutions and citizens to work together.
She said domestic capital markets have an important role in mobilising development finance.
Oteh also highlighted the potential of pension funds to support long-term investment and democratise wealth creation, provided appropriate safeguards and investment frameworks were in place.
She cited the reported broad international participation in the Dangote Refinery public offering as evidence of capital markets’ ability to attract investors beyond Nigeria.
She said that investment in education, skills and employment was particularly urgent because about 70 per cent of Africa’s population was under 30.
Oteh argued that development should not be excessively centralised, as decentralisation could improve service delivery and help communities respond to local needs.
She pointed to electricity supply in Aba, Abia State, as an example of the possibilities offered by decentralised management of infrastructure.
Oteh also stressed the importance of an enabling environment for business, including reliable infrastructure, access to finance, regulatory certainty and a skilled workforce.