Recession: Private Investment the only way out-sanusi

The Emir of Kano, Sanusi Lamido Sanusi has said that the only way that the country can survive the current recession is through private investment. The Emir of Kano who made this known at the annual Directors dinner in Lagos. While receiving an award as a Distinguished fellow of the Institute of Directors, he said: “The only way we can counter this recession is through private investment. The question is what are we doing to attract private investment.

“A Crisis never kills an economy, but the wrong response to a crisis does. We need to make a few very important decisions.” The former governor of  Central Bank of Nigeria, stated that ‎ “For how long will we continue to have negative Gross Domestic Product, GDP, rates before we recognize that we are on the wrong trajectory?

“From basic macro, your economic grows from three sources, consumption public or private, investment or export.

We know that our export are growing because of oil price and output. We know that public consumption isn’t growing because government revenue simply are not there. Private consumption is not growing because we can’t increase wages, and we cannot reduce taxes. “When you are face with an up rise shock, do you respond by absorbing the shock on nominal variable or continue absorbing the shock on real variables,” he said.