Nigeria’s Economy Has Seen No Growth Under Buhari, Says UK Financial Times

The Financial Times of London, United Kingdom, has criticized President Muhammadu Buhari, saying the “ailing” leader has done nothing to grow the Nigerian economy.

In an article written by David Pilling, its Africa editor, the global business publication, stated that the country has failed in his part to come up with a “coherent economic policy”.

Pilling likened the Nigerian economy to what he called a “dead cat bounce”, saying that the nation’s economy will grow in 2017, just like a dead cat soaked in crude oil will bounce if thrown from a 50-storey building.

According to him, Africa’s largest economy is expected to grow by 2.5 percent, but the growth will not be attained due to the growing rate of the country’s population, which is also growing at 2.5 per cent.

The newspaper however said the country has “the sharpest, most driven entrepreneurs” in Africa.

“The term ‘dead cat bounce’ derives from the fact that even a dead cat will bounce if it falls from a great height,” the article reads.
“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 acknowledged the efforts taken by Acting President Yemi Osinbajo to re-position Nigeria, saying he is “competent and dynamic” to run the affairs of the nation.

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”.