Two-time, Minister of Finance, Dr. Ngozi Okonjo-Iweala, has envisaged that President Buhari’s soon-to-be appointment coordinating Minister of the economy would have serious cash crunch issues to grapple with, due to global plunging oil revenues.

The globally renowned economist, made these assertions during a Bloomberg interview at the World Economic Forum on Africa 2015 that ended Friday, at Cape Town, stressing that the economy needs expert management to fare her through the storm:

“We have a serious situation with a cash crunch.”
“But fundamentally, the economy is strong. If we can get through the cash crunch, manage the way through, build on some of the assets we have, by next year, things will be better,” She added.

According to Bloomberg, Africa’s biggest oil producer–Nigeria, is struggling in the face of a 40% slump in crude prices in the second half of last year, which forced authorities to scale back budgeted spending and devalue the naira as foreign-currency reserves fell. The government relies on oil for about 70% of its income. The former World Bank managing Director acknowledged that the next finance minister needs to focus on:

“A strong policy, the fiscal consolidation path that we have and looking toward diversification of revenue resources;” and she revealed that she plans to take a break until August before she considers her career options but did not fail to show her anticipation on whom her successor would be:
“We are all waiting” for the new finance minister to be named, she said. “Nigeria is full of talented people so they will find someone,” she added.

According to Reuters, capital market stock holders remain still, until a lucid step is made by President Mohammadu Buhari to spew the economic team composition, exchange rate which would in turn boost investor’s confidence:

“Everybody seems to be waiting for a clearer direction from the government in terms of composition of the economic team and exchange rates policy direction and concrete steps to restore confidence in the economy,” one dealer said.
Another senior treasurer at an established commercial bank lender said:

“We hope to see renewed interest in the debt market as soon as the new government kick-starts its economic agenda with possible yields falling in tandem,” Yields on the benchmark debt maturing in 2024 inched up to 13.88 percent on Friday from 13.83 percent last week.”
Trading in Nigeria has been forecasted to remain low, since the central bank had imposed tight controls on the forex market since February in the wake of falling global oil prices and rapid depreciation of the local currency, impacting the offshore investors’ interest in the debt market. Also, is investor’s unwillingness to take positions until new President Muhammadu Buhari unveils his economic policy.

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