President Muhammadu Buhari |
A multinational banking and financial services company, HSBC, has
said a second term for President Muhammadu Buhari would stunt the
economic development of the country.
In a report, put together by its Global Research Unit, entitled,
“Nigeria, Papering over the Cracks,” HSBC said Nigeria’s current
economic struggles look set to continue if Buhari wins a second term in
office.
According to the financial institution, the president’s “approval
ratings sit near all time lows,” a development, it said, “largely
reflects the impact of Nigeria’s painful recession in 2016-17 and the
sustained economic hardship that has accompanied his presidency,
including rapidly rising joblessness, and poverty.
“A second term for Mr. Buhari raises the risk of limited economic
progress and further fiscal deterioration, prolonging the stagnation of
his first term, particularly if there is no move towards completing
reform of the exchange rate system or fiscal adjustments that diversify
government revenues away from oil.”
The multinational banking group, which is Europe’s largest by total
assets, noted that while higher oil prices have brightened Nigeria’s
macro outlook, boosting export earnings, improving the supply of foreign
exchange, and supporting naira stability, the Buhari administration was
yet to address the economy’s structural shortcomings.
It said, “Economic growth remains sluggish and reliant on the rebound
in oil output while the non-oil economy, which accounts for about 90
per cent of GDP, continues to languish with many service sectors still
mired in contraction.
“Joblessness continues to rise, up almost three-fold in three years
to 19 per cent in Q3 2017, pushing the number in poverty to 87 million.
“Meanwhile, current account improvements may have pivoted on higher oil
prices, but they also derive from on-going import restrictions and
limited FX access for many sectors of the economy.”
DAILY POST reports that the president is set to once again lead the All Progressives Congress, APC, having received his nomination form on Tuesday.
-Daily Post
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