Bank of Nigeria (CBN) Governor, Sanusi Lamido Sanusi, has
said that he is not afraid of losing his job over his call for reduction of the
nation's workforce, insisting that being the helmsman of the apex bank does not
set him in a popularity contest with any other government functionary.
Fielding questions from journalists shortly after the 13th session of the
Honorary International Investment Council (HIIC) came to a close at Berkeley
Hotel in London, on Friday night, Mallam Sanusi, said he stood by what he said
at the Second Annual Capital Market Committee Retreat in Warri earlier in the
week.
"You have to fire half of the civil service because the revenue of the
government is supposed to be for 167 million Nigerians. Any society where
government spends 70 per cent of its revenue on its civil service has a
problem. It is unsustainable,” he was quoted as saying. The NLC and TUC
immediately condemned the remarks and demanded for his sack.
However, Mallam Sanusi clarified that he did not only call for reduction
in the nation's workforce but as well, expressed the view that the large number
of political appointees at the three tiers of government was too large for
sustainable economic development of the country.
The CBN governor, wondered why just about one million people, comprising
political appointees and civil servants would be spending 70 per cent of the
nation's revenues while 167 million people were left with just 30 per cent, out
of which huge amount was still being expended on payment of subsidy.
Mallam Sanusi also accused the government of not spending enough on education
and health but on infrastructures like airports that will later be
concessioned.
His words: "Well, the headlines said I advised the Federal Government to
sack 50 per cent of workers but headlines are headlines and I can't do anything
with anyone taking on what I say. If people chose to pick on just one aspect of
my speech and make it the issue, I can't do anything about it.
"You know the Central Bank Governor is not in a popularity contest. My job
is to give a frank and honest opinion as to where I think the economy will go.
Sometimes, people will be happy, sometimes they will not. People call for my
sack, that's fine but it doesn't change the reality.
"I mean if you sack me, you appoint the next governor of Central Bank if
he knows his job, he will say the same thing and you can sack him and the next
governor will say the same thing".
The apex bank boss spoke further on the need to modify Nigeria's version of the
American system of government, which he insisted was expensive for a country
like Nigeria that is yearning for development.
"In general, we were speaking about the capital market and development and
my view is that we cannot have a thriving capital market, we cannot have
long-term economic development until the government starts spending less money
on itself and more on the real economy.
"A situation in which 70 per cent of government's revenues goes to payment
of public service workers in some states in the north obviously they are going
to pay monthly salaries, there is no way in that situation you are going to
create the economic growth that you require and the government cannot employ
all the 167 million Nigerians.
"So, we have a situation in which one million public servants at the
local, state and federal levels take 70 per cent of government’s revenues and
30 per cent is left for 166 million Nigerians for health, education, roads, for
power. It's simply not assisting the system.
"Then certainly, I spoke about the need to reduce the size of the
public service and I wasn't necessarily talking about civil servants because
you also have political appointees.
"We have 774 local governments, each local government has a chairman and
10 councillors, we have 36 states in Nigeria – governors, deputy governors,
special advisers, special assistants, state Houses of Assembly and their
officials.
"There is one state governor I know that, according to the newspapers, has
over 400 special assistants. At the federal level, we have the President, the
Vice President, 500 federal legislators, 43 ministers. Now, these are
constitutional issues but even if they are, we have a clause that says you must
have a minister from every state and what does that mean?
"Do you decide the numbers of ministries at the federal level based on the
number of states that you have? So, do you really need 43 ministers? These are
questions that we need to ask. It's an American system for a rich country. I am
not aware of any African country that has that kind of political system, it is
very expensive.
"My view and that of every trained economist is that any system that
continues to spend all its revenues on salaries can solve short-term problems
for a small minority but create longer term problems for the rest of the
country and that was it.
"You know, we must face the reality that you cannot have development
without broad-based capital formation. Obviously, I didn't just talk about the
workforce. Out of the 30 per cent that we spend, we spend a lot if money on
fuel subsidy we are consuming. Why should we subsidise consumption?
Compass
Fielding questions from journalists shortly after the 13th session of the Honorary International Investment Council (HIIC) came to a close at Berkeley Hotel in London, on Friday night, Mallam Sanusi, said he stood by what he said at the Second Annual Capital Market Committee Retreat in Warri earlier in the week.
"You have to fire half of the civil service because the revenue of the government is supposed to be for 167 million Nigerians. Any society where government spends 70 per cent of its revenue on its civil service has a problem. It is unsustainable,” he was quoted as saying. The NLC and TUC immediately condemned the remarks and demanded for his sack.
However, Mallam Sanusi clarified that he did not only call for reduction in the nation's workforce but as well, expressed the view that the large number of political appointees at the three tiers of government was too large for sustainable economic development of the country.
The CBN governor, wondered why just about one million people, comprising political appointees and civil servants would be spending 70 per cent of the nation's revenues while 167 million people were left with just 30 per cent, out of which huge amount was still being expended on payment of subsidy.
Mallam Sanusi also accused the government of not spending enough on education and health but on infrastructures like airports that will later be concessioned.
His words: "Well, the headlines said I advised the Federal Government to sack 50 per cent of workers but headlines are headlines and I can't do anything with anyone taking on what I say. If people chose to pick on just one aspect of my speech and make it the issue, I can't do anything about it.
"You know the Central Bank Governor is not in a popularity contest. My job is to give a frank and honest opinion as to where I think the economy will go. Sometimes, people will be happy, sometimes they will not. People call for my sack, that's fine but it doesn't change the reality.
"I mean if you sack me, you appoint the next governor of Central Bank if he knows his job, he will say the same thing and you can sack him and the next governor will say the same thing".
The apex bank boss spoke further on the need to modify Nigeria's version of the American system of government, which he insisted was expensive for a country like Nigeria that is yearning for development.
"In general, we were speaking about the capital market and development and my view is that we cannot have a thriving capital market, we cannot have long-term economic development until the government starts spending less money on itself and more on the real economy.
"A situation in which 70 per cent of government's revenues goes to payment of public service workers in some states in the north obviously they are going to pay monthly salaries, there is no way in that situation you are going to create the economic growth that you require and the government cannot employ all the 167 million Nigerians.
"So, we have a situation in which one million public servants at the local, state and federal levels take 70 per cent of government’s revenues and 30 per cent is left for 166 million Nigerians for health, education, roads, for power. It's simply not assisting the system.
"Then certainly, I spoke about the need to reduce the size of the public service and I wasn't necessarily talking about civil servants because you also have political appointees.
"We have 774 local governments, each local government has a chairman and 10 councillors, we have 36 states in Nigeria – governors, deputy governors, special advisers, special assistants, state Houses of Assembly and their officials.
"There is one state governor I know that, according to the newspapers, has over 400 special assistants. At the federal level, we have the President, the Vice President, 500 federal legislators, 43 ministers. Now, these are constitutional issues but even if they are, we have a clause that says you must have a minister from every state and what does that mean?
"Do you decide the numbers of ministries at the federal level based on the number of states that you have? So, do you really need 43 ministers? These are questions that we need to ask. It's an American system for a rich country. I am not aware of any African country that has that kind of political system, it is very expensive.
"My view and that of every trained economist is that any system that continues to spend all its revenues on salaries can solve short-term problems for a small minority but create longer term problems for the rest of the country and that was it.
"You know, we must face the reality that you cannot have development without broad-based capital formation. Obviously, I didn't just talk about the workforce. Out of the 30 per cent that we spend, we spend a lot if money on fuel subsidy we are consuming. Why should we subsidise consumption?
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