The Economist magazine, which always bad-mouths Nigeria, has projected that the economy in 2016 under President Buhari will be uninspiring. Hope this projection will be rubbished by this administration.
Nigerians have been told to expect a bleak economy in 2016.
This is contained in the 2016 forecast for world economies by London-based magazine, The Economist. According to the magazine’s analysts, early signs are of a worrying resurgence of economic nationalism, stressing that economic growth under the presidency of Muhammadu Buhari will be “uninspiring” in 2016.
“Given policy uncertainties and a lower oil price environment, the Economist Intelligence Unit expects growth to remain well below recent averages throughout the 2016-20 forecast period.”
It noted that Buhari made a slow start to his presidency, with his cabinet only sworn in during mid-November. Therefore, “ministers will take time to settle in and so the clearer policy lines investors want will then take into 2016 to establish.”
The All Progressives Congress (APC) will limit Buhari’s strides in the management of Nigeria’s oil sector, it added. Nigeria’s budget balance, according to The Economist, stood at -1.4, the least among all the countries explored, with Angola at -2.1, Egypt -9.2, Saudi Arabia -11.4, and South Africa’s -3.5.
The magazine said Buhari will address the problem of corruption and insecurity in the country. “The new president, Muhammadu Buhari, will use his political capital to address entrenched problems of corruption, insecurity and low living standards, but the patience of an electorate with high expectations will be short.
“Clashing interests within the ruling party will limit efforts to improve management of the oil sector. Economic growth will be uninspiring.”
The British paper had initially said Kemi Adeosun is poorly qualified to be the country’s finance minister. “Africa’s biggest economy, which relies on oil for 70% of its revenue, is sputtering as prices fall. Economic policy has been adrift since Mr Buhari came to power, and investors complain about the central bank’s use of trade controls and import restrictions,” The Economist said in November.
“However, the new finance minister, an accountant who cleaned up the books of one of Nigeria’s smaller states, is poorly qualified for the job. “Her counterpart in the investment ministry is a respected businessman, but he may lack the clout to stand up to a president with statist leanings.” APC has recorded a number of in-fighting since Buhari came into power, the longest-running being the one involving the emergence of Bukola Saraki as senate president.
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