Sanusi Urges Nigeria to Address Human Cost of Economic Reforms
Former CBN chief warns macroeconomic stability must prioritize vulnerable citizens' welfare.
1Economic Recovery Progress
Former Central Bank of Nigeria Governor Lamido Sanusi acknowledged that federal government reforms have successfully pulled the nation back from the brink of economic collapse. Speaking at the Oxford Global Think Tank conference, he highlighted that GDP growth reached 4.48 percent in the second quarter of 2026, marking a significant improvement over previous years.
2Macroeconomic Metric Improvements
Sanusi noted that inflation has declined from over 30 percent to 14.6 percent, with projections suggesting a further drop to 12 percent next year. External reserves have climbed to 55 billion dollars, bolstered by elevated crude oil prices and increased portfolio inflows, signaling a stabilization of the country's broader financial position.
3Industrial Output Gains
Non-crude output has seen a substantial boost, largely driven by the Dangote Refinery. In the second quarter of 2026, the facility contributed approximately 4 billion dollars to exports. The refinery currently exports 50 percent of its diesel production and 85 percent of its aviation fuel, providing a vital pillar for national economic growth.
4The Human Cost
Despite positive top-line numbers, Sanusi warned that macroeconomic gains remain disconnected from the daily realities of citizens at the bottom of the pyramid. He emphasized that the government has failed to adequately address the severe hardships, including rising malnutrition, maternal mortality, and the lack of essential education and healthcare services for the poor.
5Policy Design Failures
Sanusi criticized the lack of proactive planning regarding the social fallout of aggressive reforms. He argued that policymakers should have anticipated the negative impact on vulnerable populations and designed specific interventions to minimize these shocks. Currently, large segments of the population have been pushed below the poverty line without any functional safety nets.
6Volatility and Risks
The former central bank chief cautioned against complacency, noting that current stability is fragile. He pointed out that portfolio flows are inherently susceptible to global geopolitical shocks, which could quickly reverse recent gains. Nigeria must remain vigilant, as the reliance on external factors leaves the economy exposed to sudden shifts in international market conditions.
7Regional Wealth Disparities
The analysis highlighted stark disparities in wealth distribution across different Nigerian regions. While poverty levels have receded in certain areas, other parts of the country face worsening conditions. Sanusi stressed that national progress cannot be measured solely by aggregate GDP growth when significant portions of the population remain excluded from the benefits of recovery.
8Future Policy Imperatives
Sustained progress will ultimately be judged by how effectively the administration shields its most vulnerable citizens. Sanusi reiterated that while the current government deserves credit for steering the economy away from collapse, the next phase must prioritize social welfare. Implementing robust safety nets is essential to ensure that economic stability translates into improved human development.