Focus on Human Capital development
Former Emir of Kano and one-time Central Bank Governor, Sanusi Lamido Sanusi has advised governments to invest in Human Capital and to create enabling environment for investments, instead of borrowing to finance development projects.
He spoke on Tuesday at the second day of the Kaduna Economic and Investment Summit (KADINVEST) 5.0. He decried the lack of diversification of the Nigeria’s economy, 60 years after the discovery of oil in the country.
Mr. Sanusi compared Nigeria and Malaysia, saying that the Malaysia has transformed from an exporter of primary products, to manufacturing over a 30-year period, 1970 to 2000, with her ‘’GDP/capita increased from $310 to $4,045 within that period.’’
He said that, though Nigeria has generated an increase in wealth from $345 in 1985 to $2,655 in 2015 GDP/capita, there is no “structural transformation in what the country actually produced.’’
The former Governor of CBN pointed out that the export of crude petroleum and oils obtained from bituminous materials contributed almost the same increase in wealth in Nigeria within the past 30 years.
In his view, though the economy is growing, it has not been diversified; this he explained, is responsible for the high rate of poverty and high level of inequality in the country.
He drew a line between African countries and those in Asia, saying the difference is that the Asian countries have diversified from primary to secondary and tertiary sectors of the global economy.
Mr. Sanusi said that while everyone looks to the federal government for solutions,he maintained that the role of government in the economy is small—both in absolute and relative terms.