Former Central Bank of Nigeria Governor, Lamido Sanusi, has praised the federal government for stabilizing the nation's economy, but emphasized the need to address the human cost of reforms. Speaking at the Oxford Global Think Tank conference, Sanusi noted that while macroeconomic gains are promising, they are meaningless without interventions to protect vulnerable citizens. He cited significant improvements in GDP growth, inflation, and external reserves as evidence of tangible recovery.
Sanusi pointed to Nigeria's GDP growth of 4.48% in Q2 2026, a substantial increase from the 0.9% average growth during the Buhari administration. He also highlighted a decline in inflation from over 30% to 14.6%, with projections of 12-12.5% for next year. The aggressive monetary tightening cycle has enabled Nigeria to control consumer prices, creating room for the apex bank to consider easing monetary policy.
External reserves have climbed to $55 billion, driven by elevated crude oil prices and substantial portfolio inflows. Sanusi also noted that GDP per capita in dollar terms expanded by 47% in 2023, driven by economic growth and a firmer exchange rate. The Dangote Refinery has significantly boosted non-crude output, contributing approximately $4 billion to exports in Q2 2026.
Despite the positive trends, Sanusi cautioned against complacency, citing the volatility of portfolio flows and their susceptibility to global geopolitical shocks. He stressed that stability achieved so far is only a starting point and urged policymakers to address the severe hardships facing everyday Nigerians.
Sanusi lamented the stark disparities in wealth distribution across regions, noting that while poverty has decreased in some areas, large segments of the population have been pushed below the poverty line without adequate buffers. He emphasized the need for policies that minimize shocks to the most vulnerable citizens.
The former central bank chief highlighted the need for functional social safety nets to shield vulnerable citizens from the impact of reforms. He reiterated that sustained progress will ultimately be judged by how effectively the government protects its most vulnerable citizens.
Sanusi commended the current administration for steering the economy away from collapse, but emphasized that more needs to be done to address the human cost of reforms. He urged policymakers to confront the severe hardships facing everyday Nigerians, including issues related to education, healthcare, maternal mortality, malnutrition, and hunger.
Key points
- Sanusi urges Nigeria to address the human cost of economic reforms.
- Nigeria's economy shows signs of recovery with improved GDP growth and controlled inflation.
- Sanusi emphasizes the need for functional social safety nets to protect vulnerable citizens.
