The Central Bank of Nigeria (CBN) Governor, Lamido Sanusi has called for decisive action in the oil sector of the economy.

Speaking at a public forum in Abuja last week on subsidy removal, Sanusi said if he was in charge of the oil sector, he would embark on the same holistic reforms he adopted in the banking sector.

“If I were in charge of the area (oil), I would do exactly what I did as the CBN governor, but you’ve got to ask the people in charge of the area what’s happening.”

The CBN Governor won widespread applause for sacking the heads of several major Nigerian banks, helping to turn around a banking crisis in 2009, the year he became central bank chief. He thinks the same should be done within the oil industry.

He disclosed that the nationwide strikes and protests against the government’s removal of fuel subsidies was costing the country around N100 billion daily.

Sanusi said he expected inflation to rise to around 14-15 per cent by the middle of this year, up from 10.5 per cent now as the impact of subsidy removal was felt on prices.

“Clearly, inflation is always going to go up with the removal of subsidy. I think what we’ve seen is the immediate shock impact of a sudden removal and things will settle down,” Sanusi said.

“It took us 2-1/2 years from 2009 to come down to single-digit from 15.6 pct. I think it is a realistic target if we actually hit 15 per cent, and we will be looking at end of 2013 before we come back to single-digits.”

Sanusi said it was positive that negotiations were ongoing but he urged government to agree is a deadline with unions for removing fuel subsidies altogether, rather than leaving it open ended, which could lead to public demonstrations in the future.

“I think it’s time to make a deal ... any kind of compromise should have a final deadline for removal of subsidy,” he said, adding that options could include capping prices at 100 naira a litre and phasing out subsidies, although he said details would have to be left to the government and workers.