The immediate past Emir of Kano and former Governor of the Central Bank of Nigeria, Muhammad Sanusi, has again said it is inevitable for Nigeria to be bankrupt with its current governance structure, which he described as too expensive and unsustainable.

The outspoken economist, who has repeatedly complained about the cost of governance in the country, said with the fiscal crisis the country is facing and looking at where Nigeria is headed post-COVID-19 crisis, it had become imperative for Nigeria to ask fundamental questions about the structure of its federation.

Speaking at a webinar hosted by Emmanuel Chapel, with the theme, ‘Mitigation of the economic impact of COVID-19 and the path to recovery’, Sanusi said when he was the CBN governor and the price of oil was over $100 per barrel, the government at the time spent 80 per cent of its revenue on salaries and overheads. “Now, I’m sure that with the shortfall in revenues and where oil price is, after debt service, we probably have to borrow to pay salaries. We have got to look at that structure,” he added.

He stated further, “If you have a company and you have extremely high overheads and you need a high contribution margin to break even, you would be looking at how to reduce cost. So, we have a constitution that says we should have a president and a vice-president, we must have a minister from every state of the federation, whether or not it’s 36 ministries; we should have 109 senators and 360 members of the House of Representatives.

“It also said we should have 36 governors, 36 deputy governors, each state with its House of Assembly and comprising many legislators, 774 local government chairmen, councillors, the personal assistants and special assistants (at all levels), staff members and vehicles.

“With these, you are already set up to be bankrupt. This is something I have been talking about for years. We need to ask ourselves; the structure that we have, does it leave us any option rather than to remain unsustainable over time? This is the kind of conversation we need to have as a country.

“Do we need a bicameral legislature; do we need close to 500 legislators in Abuja; do we need the hundreds of state legislators; what are they doing; do we need all these local government chairmen and councillors or do we need to look at that structure?”



At the event anchored by the founder/CEO, BFA Foundation, Olu Verheijen, Sanusi also said even if it wouldn’t reduce cost, government could increase productivity by redeploying personnel from the civil service where many people do administrative works to areas like education and health care.

https://punchng.com/nigerias-governance-structure-set-up-for-bankruptcy-sanusi/

Omooba77:
Nigeria’s governance structure set up for bankruptcy — Sanusi

b

When are we going see some positive thing about this country?

Nigeria spent 99% of first quarter revenues on debt servicing. I really want to see how government tackles the challenges ahead.

Continue to dey pepper them. You no longer have anything to lose

Of course Nigeria operates one of the most expensive system of government in the world dictated by what happens @ the centre.Hence the earlier power is devolved away from the centre to regions by restructurng the better for this nation.

Racoon:
Of course Nigeria operates one of the most expensive system of government in the world dictated by what happens @ the centre.Hence the earlier power is devolved away from the centre to regions by restructurng the better for this nation.

Our politicians/ rulers are only wise when they left governance

Poloyanabo2:
b

?

Racoon:
Of course Nigeria operates one of the most expensive system of government in the world dictated by what happens @ the centre.Hence the earlier power is devolved away from the centre to regions by restructurng the better for this nation.

The structure has no foundation, people knows these as long as they eat from it, it is perfect, but once the food plate is removed, it becomes faulty.
A dundee can run America, UK and all these developed countries because they have institutions and structures.
It is lack of institutions that makes aides powerful than the elected.

Nigeria's governance structure was built on air with no solid foundation on the ground

helinues:
Nigeria's government structure was built on air with no solid foundation on the ground

Lol lol lol

it is inevitable for Nigeria to be bankrupt with its current governance structure, which he described as too expensive and unsustainable.

all these neorealisst scholarship is always the past time of former office holders. how did CBN fair under him

slivertongue:
it is inevitable for Nigeria to be bankrupt with its current governance structure, which he described as too expensive and unsustainable.

Nothing is changing. We are still wasting resources on frivolities, duplications and so on.

slivertongue:
all these neorealisst scholarship is always the past time of former office holders. how did CBN fair under him

Big question. I said it earlier, we are only wise after.

Omooba77:


Nothing is changing. We are still wasting resources on frivolities, duplications and so on.

POINT BLANK. !!!

festacman:
I agree with RATIONAL Sanusi on the need to cut governance costs although I believe that the problem has more to do with LEAKAGES caused by corruption done by both highly and lowly placed staff in our public service than it has to do with actual overhead costs.

Now, back to HYPOCRITICAL Sanusi. What justification has the then Emir Sanusi to maintain ostentatious lifestyle, using taxpayers' money from state and local governments when he could have his reign to save money and utilize it to develop the people as a way of leading by examples.

At this critical time and being at crossroads, Nigeria needs men and women who do what they preach, who walk the talk and who are more practical than theoretical. Nigeria needs real selflessly PRACTICAL visionaries who are ready to make personal sacrifices in search new ideas to bring about paradigm shift.

Oga sanusi is absolutely right even if u remove corruption there is nothing even u can do

Civil savants take up 60% of revenue 30% for debt servicing , 5% stollen and 5% work

Racoon:
Of course Nigeria operates one of the most expensive system of government in the world dictated by what happens @ the centre.Hence the earlier power is devolved away from the centre to regions by restructurng the better for this nation.

Our government is not expensive we are not generating enough

Omooba77:


Our politicians/ rulers are only wise when they left governance

Sanusi has been the same since he was cbn governor

slivertongue:
all these neorealisst scholarship is always the past time of former office holders. how did CBN fair under him

CBN was fantastic under him ... without him many bank would have collapsed and he has been an advocate of restructuring from day one

So, he's just realizing this

They suddenly become wise, once they're out of Governance.

All governments on the globe must be made to be dependent on income taxes and other taxes instead of natural resources.

Sai sarki!

He's always on point.

This is the next governor kano state, in sha Allah. I want someone that will drag Ganduje like say him tiff charger.

Igbochief001:
Sanusi has been the same since he was cbn governor

Lol

slivertongue:

POINT BLANK. !!!

I pity youth

13B to spray sniper in 12 northern states. I laugh.