His Highness Khalifa Muhammad Sanusi II has got to be one of my top truth-tellers.
First, the good news: the war in Ukraine has negatively impacted many nations/regions, but Sub-Saharan Africa is actually doing BETTER than predicted so far this year.
Then, the bad news: if our woes in Nigeria can’t be linked to the war in Ukraine, that means our woes in Nigeria are linked to…. Nigeria. The dollar is gaining strength and we continue to be an oil economy with no oil revenue.
#KADInvest7
Yikes - presentation interrupted by the entrance of BAT.
Back on track now.
The gap between projected and actual oil revenues continues to widen. So… over the past several years, the Nigerian federal government turned to the central Bank for general ways and means.
The CBN has lent FGN 100x what the limit is.
#KADInvest7
“If you put 2 trillion naira into your economy and your dollar reserves do not increase, what happens? Your currency devalues.
There has been a fundamental lack of understanding of how economies work.”
#KADInvest7
The result of this has been devaluation of the naira and massive inflation. An 18% rate of inflation means on average, the price of everything will double in 4 years.
“When I say that our problems are of our own making… there’s no way you can buy dollars at below market rate & not introduce arbitrage, rent seeking, & corruption. If you can access $1 million dollars at the official rate, you can make a profit of 300 million naira”
#KADInvest7
“According to official stats of motor gasoline consumption, we should be seeing 4,000 tankers on the roads every day - 2,000 full going out to sell and 2,000 empty going back to refill.
Where are these tankers? Do you see them?”
#KADInvest7
“Look at this chart and draw your own conclusions. We are told that we are importing and consuming three times as much fuel per capita as Pakistan, a country with comparable GDP per capita and comparable roads.”
🤔
#KADInvest7
“We’re just not serious as a country.”
Nobody owns this man. We stan 🙇🏻♀️
#KADInvest7
“We have no plan. We see the problem, but we’re going to continue. I feel sorry for whoever will step into the office of the president next June and remove the fuel subsidy.”
#KADInvest7
Clear recommendations. Are we strong enough to follow them?
“Anyone who tells you it’s going to be easy, don’t vote for them.”
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