FT: Buhari has practically done nothing to grow Nigeria’s economy

Finacial Times of London says President Muhammadu Buhari has practically done nothing to grow Nigeria’s economy, stating that the country has let a crisis go to waste.

In an article written by David Pilling, its Africa editor, the newspaper said the economy will grow in 2017, just like a dead cat will bounce if thrown from a 50-storey building.

“The term ‘dead cat bounce’ derives from the fact that even a dead cat will bounce if it falls from a great height. If you imagine a dead cat soaked in crude oil and dropped from a 50-storey building, you get a rough picture of how Nigeria’s economy is performing these days.

“Nigeria is expected to grow 2.5 per cent this year after contracting 1.6 per cent in 2016. But the population is also growing at 2.5 per cent. So in per capita terms, things are going nowhere.

“The reasons for the “recovery” are twofold. First, last year’s performance was so dismal it would have been difficult for the economy to fall further. Without doing anything at all — a reasonable description of policy under Muhammadu Buhari, the country’s ailing leader and frequent London resident — the baseline effect has worked its magic. Second, the oil that makes up so much of government revenues is flowing faster. In June, production was 1.7m barrels a day, 10 per cent higher than a year ago.”

FT said Nigeria’s power house has not heard of the advice that “one should, they say, never let a crisis go to waste”, further stating that Nigeria has let its recession go to waste and will return to business as usual as oil prices recover.

The newspaper acknoledges that Nigeria has among “the sharpest, most driven and entrepreneurial” people on the African continent.

Pilling added that Buhari “has spent much of the past year convalescing from a mystery illness that has sapped his presidency of vigour and set off a merry-go-round of political jockeying to succeed him. There has been practically nothing in the way of coherent economic policy”.

In all of these, FT adds that Acting President Yemi Osinbajo is “competent and dynamic” to run Nigeria, and has been doing just that.