Analysts urge speedy formation of cabinet

By Chijioke Nelson,




President Muhammadu Buhari’s slow decision-making process could once again impede his second term in office and endanger the economy.
One week after signing the N8.92 trillion 2019 budget and five days after the new administration was inaugurated, Buhari’s “body language,” according to a source close to the presidency, seems out of tune with the urgent need to set up a cabinet, reset the ailing economy and properly deploy the budget’s borrowed funds.

“Baba’s way is taking things gradually. But I don’t think it would take long like before. There is a need to prove a point this time around, coupled with the criticisms against him and the condition of the economy. For now, it’s not clear whether he will speak on it this week,” the source said.

What has thrown into sharp relief the slowness of Buhari is that South Africa’s president, Cyril Ramaphosa, named his cabinet 96 hours after he was sworn in, becoming also the third president on the continent to have a gender-balanced cabinet, after Rwanda and Ethiopia.

Affirming the connection between cabinet inauguration and the financial market, the South African rand reacted positively, appreciating by 0.5 per cent.In 2015, investors and financial market players, both foreign and domestic, waited six months before Buhari picked his cabinet. The development signalled a lack of direction and fuelled speculations. It also led to uncertainty, near-inactivity, cautious investments and huge withdrawal of investments, besides institutional sanctions.

According to the chief executive officer of Cowry Asset Management Limited, Johnson Chukwu, “It was more of a dark moment, as there was no fiscal policy direction to boost activities. The development caused investment reversals, while potential inflows were kept on the sidelines against perceived uncertainties. The hiatus, in an already high-speed growing economy, was a key reason behind the high-level economic headwinds that culminated in recession. We cannot afford it this time.”

Currently, the economy is hostage to external shocks, even as the latest report on Gross Domestic Product (GDP) shows a reverse from major gains in the fourth quarter (Q4) of 2018. It went down from 2.39 per cent to 2.01 per cent in the first quarter (Q1) of 2019, representing a decline by 0.38 per cent.

But a financial analyst, Egie Akpata, was skeptical on what the president’s package could unfold. He told The Guardian that the economy might not witness any great change, as Buhari might return many of his “underperforming” ministers. He nevertheless expressed hope that the 2015 delay would not repeat itself, even as he called for urgent attention to bring the economy out of its “bad shape.”

FXTM research analyst, Lukman Otunuga, noted that the key question on the minds of many investors is what his re-election means for the economy in 2019 and beyond, with emphasis on shifting the economy from reliance on oil, rather than mere proclamations.

“The market is still afraid his victory suggests continuity of policies. On the other hand, it offers the government an opportunity to build on what has already been achieved over the last four years. If infrastructural developments are worked upon and there is real diversification, especially in agriculture, coupled with strategies to mitigate external risks, Nigeria could still surprise the world this year,” Otunuga said.

On his part, economist, Bismarck Rewane, said: “We need investments to move on. Of course, there are signs. But what we need more, now, not the signs, but tangibles. In the near term, everything will continue this way, unless something different happens.”

Financial analyst, Ayodele Akinwunmi, said the president has learned from the past. He was therefore optimistic that he would constitute his cabinet on time with a team to drive his economic growth agenda.He warned: “Any delay like what we had in 2015 may put the economy on reverse gear from its current momentum. I am sure the president will not like such. I believe Nigeria will have a cabinet before the end of June. Expectations for the second term are high and there is a lot of work to be done.”

Also, economist, Dr. Olalekan Obademi, said he would not expect the president to repeat the late appointment of cabinet ministers. According to him, “The effect is that the uncertainty could lead to capital flight and create other distortions in the economy.”

https://m.guardian.ng/news/how-buharis-slow-decision-process-may-upset-economy/

Baba go slow

Baba don’t have anything news on his selves, same old way,let not expect any positive.

K

:Is a gradual process...not really slow...D....happy holiday Tuesday and Wednesday

Baba go slow.

At the end, his policies are always rusty and and anti people.

I dreamt dat amechi was dropped and ambode was giving appointed

What can I say? He doesn't seem to disappoint , and is living by his nickname. #babagoslow

More than fives years now and the economy has been on its worst

So unfortunate....how could someone like Buhari occupy the office a President in the first place!

I wonder why he's always very slow.
Not that the outcomes are usually good.

Only God go help us!



Is your business suffering? Check my signature

Baba Go Slow

He obviously doesn't realise it takes time to gather developmental momentum in government

goduzu:
I dreamt dat amechi was dropped and ambode was giving appointed

If Amaechi is not dropped, please do not do something dangerous to yourself please.
Your family still need you.

The most hardworking and most performing Minister should be dropped all because you are sick of the good projects happening all over the nation?!

Pathetic soul.

SoNature:

I am not a Buhari's fan.
I am not an APC fan either.
But I do agree with you this time.
Amaechi was the best minister of the last administration.

Only the willfuly blind and the enemies of the country will try to deny this truth.

Nigeria like Venezuela will keep talking about Economy crisis due to our over-dependence on Crude-oil that will likely be of no use anymore with the most recent and Improved Solar and Electrical household appliances development across the world.


In the nearest future, The next Generation will have nothing to lean back to.... This next generation will likely be lazy as there is no set plans from the recent government other than looting!!


The best sector to turn things around right now is the education sector.... Change its curriculum and revamp it's internal system to only and strictly admit students on merits.... Then for the unmerit ones, involve them in skill acquisition trainings and employ them....

Well there was nothing to learn from his first democratic tenure well he hasn’t been learning self. He has always had everything done for him

Is that right?

OK nah

goduzu:
I dreamt dat amechi was dropped and ambode was giving appointed

That's why it is good to eat before you sleep so that you won't be dreaming nonsense.

bubu is a slow poke

Buhari na cow

God help Naija... All I can say

Baba Go slow of d Federal Republic

The same topic twice.
Myndy44
Lalastico

He's too slow and unintelligent of a President its unfortunate

which Economy again?... the one he already destroyed via plunging it into an avoidable recession with his dumb / dinosaur policies?... #PATHETIC FILTH!

But he is known as BABA GO SLOW.

Not just slow decision but the buhari himself is already an upset to the economy

Baba go slow

goduzu:
I dreamt dat amechi was dropped and ambode was giving appointed

RIP English
Awo's ewedu based free education really did a lot of damage.