Video: Sanusi Lamido Predicted Today’s Recession, Naira Crash & More if Oil Price Falls

by Uche Onegeria 4 Feb , 2017  

I have been looking for a simpler resource to quickly explain to Nigerians that our current economic crisis is not President Buhari’s fault and I think this would do it.

Sanusi Lamido Sanusi (now Emir Muhammadu Sanusi II) was Governor of Central Bank of Nigeria (CBN) from 2009 to 2014.  5 years ago, he predicted everything happening the the Nigerian economy today.

 

Shorter Video explaining what is happening today to cause Nigeria’s Economic recession and Crash in Naira-Dollar Price

I have transcribed some of his messages below;

“Now, let me tell you something, this government can continue paying this subsidy till 2015, it will not come down but the next gov will be saddled with  a debt burden that we cannot maintain and the greek situation will be nothing compared to where we are now”

What is Greek situation?

The Greek government-debt crisis (also known as the Greek Depression) is the sovereign debt crisis faced by Greece in the aftermath of the financial crisis of 2007–08 – Wikipedia

“In 2008, the price of oil price went from $147/barrel to $40 – $37/barrel.  3 weeks before then, I was in washington, in the world bank meeting. They had different models and projections that oil price would not fall below $85/barrel. It came down to $37. The only reason this economy continued growing was that we had reserves of $62 billion (from the previous government) which is now down to $30 billion. That was the shock absorber but we do not have that shock absorber today.”

“If the oil price crashes again by 30-40%, If the Naira goes to 200 to the dollar, when you can no longer pay salaries, when inflation goes to 18% because of monetized (we have printed money), then we will know what a crisis is. You have to prepare yourself. What happens.

Even Europe. China is slowing down. India has had inflation, Brazil and others who have provided the engine of growth in 2008 are in slowdown mode.

Meanwhile instead of preserving our government balance sheet, preserving your gov balance sheet so that in the event of a crisis you can cope, you want to continue paying 1 trillion Naira in subsidy to who? To who?”..

Find the oil price over the past 5 years below:

Here is the full video

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