Emir Sanusi Lamido, former governor of the Central Bank of Nigeria (CBN) and the Emir of Kano, has commended recent monetary measures taken by the bank, saying they have helped steady the economy after a period of pronounced instability. In an interview on News Central, he attributed improved stability to the CBN’s efforts to reduce excess liquidity and correct exchange-rate lapses.
Sanusi acknowledged the cost of tighter monetary policy, noting that interest rates have risen, but he described those moves as necessary adjustments to restore macroeconomic balance. “Interest rates are high, yes, but we have stabilised the exchange rates; we have pulled back from the brink of total economic collapse,” he said.
The former CBN governor acknowledged that the economy is growing faster than the population, asserting that Nigeria is on the right path.
Sanusi, while speaking during an interview on News Central on Tuesday, expressed that the Central Bank has corrected the lapses in the exchange rate, stating that Nigeria have pulled back from total economic collapse.
He said, “At the moment, as far as monetary policy is concerned, I have nothing but positive words for what the central bank has done. We are coming from a background of very high levels of instability as a result of loose money and uncontrolled money supply, and the Central Bank has taken the last year to mop up all that money.
The former CBN governor pointed to encouraging signs in key indicators: inflation, while still elevated at around 20 percent, is on a downward trajectory from higher levels recorded in prior years. He also observed that, for the first time in a long while, economic growth appears to be outpacing population growth—an outcome he described as a positive development for the country.
Sanusi praised improvements in revenue collection on the fiscal side but warned that public expenditure patterns could undermine macroeconomic gains. He criticized the high cost of governance, including the proliferation of political appointees and officers, and expressed concern about subsidies that do not effectively reach intended beneficiaries.
The Emir’s remarks echo a broader policy under Cardoso lead administration emphasis within the CBN on mopping up excess money supply to curb inflationary pressures and stabilise the naira. Analysts say such measures typically aim to restore investor confidence and reduce exchange-rate volatility, though they can impose short-term costs on borrowing and growth.
Sanusi’s comments come against the backdrop of ongoing debates about the balance between monetary restraint and inclusive fiscal policy. While monetary tightening has helped address immediate instability, many observers stress the need for complementary fiscal reforms to sustain progress and ensure that relief reaches vulnerable households.
