Sanusi Commends CBN, Says Nigeria Pulled Back from Brink of Collapse

The Emir of Kano and former Governor of the Central Bank of Nigeria (CBN), Muhammadu Sanusi Lamido, has commended the monetary authorities for taking decisive actions that have helped stabilise Nigeria’s economy over the past year.

Sanusi said the country had previously faced a period of severe economic instability caused by excessive liquidity and uncontrolled growth in money supply.

According to him, the Central Bank has spent the last one year deliberately mopping up excess money in the system to restore macroeconomic stability.

“I have nothing but positive words for what the Central Bank has done. We are coming from a background of a very high level of instability as a result of loose money and uncontrolled growth in money supply, and the CBN has taken the last one year to mop up all the money,” he said.

While acknowledging that interest rates remain high, Sanusi noted that the tightening measures have helped stabilise the exchange rate and prevent a deeper economic crisis.

“Yes, interest rates are high, but we have stabilised the exchange rate. We pulled back from the brink of total economic collapse,” he stated.

Sanusi further observed that inflation, though still elevated, is on a downward trend compared to previous years. He added that interest rates of about 20 per cent, while still high, are significantly lower than the extreme levels recorded in recent years.

He also highlighted improvements in Nigeria’s external reserves, which he said have risen to over $40 billion, providing stronger buffers for the economy.

On economic growth, Lamido said Nigeria recorded growth of over 3 per cent in the first quarter of the year and more than 4 per cent in the second quarter, marking a notable turnaround.

“This is the first time in a long time that the economy has been growing faster than the population,” Sanusi said.