Bloomberg has published another scathing piece on the Nigerian economy under President Muhammadu Buhari.
Read excerpt below:
Muhammadu Buhari took office as Nigeria’s president a year ago on a wave of optimism that the ex-military ruler could revive a nation battered by falling oil prices and decades of corruption.
Now, Africa’s biggest economy is on its knees and Buhari has been forced to throw in the towel on a central pillar of his economic policy — a currency peg.
“It was difficult to imagine a scenario in which things got worse,” said Malte Liewerscheidt, a Nigeria analyst at Bath, U.K.-based consultant Verisk Maplecroft. “But it’s been a lost year. What’s missing is sound macroeconomic policies.”
Nigeria will soon enter a recession, according to the central bank, and an upsurge of militant attacks since February has sent crude production, which usually accounts for 70 percent of government revenue, plummeting to an almost 30-year low. Delays in approving a budget and a cabinet as well as Buhari’s refusal to weaken an overvalued currency — until he relented this week — have caused foreign investors to flee.