Lagos (AFP) - When Nigerian President Muhammadu Buhari finally swore in his cabinet in November, nearly six months after taking office, he hoped to shake off his nickname "Baba Go Slow".

But troubling errors in the budget of Africa's largest economy and the continuing free fall of the naira on the black market have both Nigerians and investors worried that Buhari still isn't moving fast enough to address a deepening economic crisis.

Since its peak in 2014, the global price of oil -- which accounted for two-thirds of the Nigerian government's revenue -- has plunged by 70 percent, decimating economic growth and the naira.

In response, Buhari announced a record 6 trillion-naira ($30-billion, 27 billion-euro) budget promising to triple investment to stimulate growth.

Yet his budget proposal was pockmarked with mistakes, repetitions and, given the circumstances, extravagant demands.

The errors include the same purchases for vehicles, computers and furniture that are duplicated 24 times, totalling 46.5 billion naira.

This opens the door for graft, according to Oluseun Onigbinde, co-founder of BudgIT, a Nigerian transparency group.

"It clearly showed there was foul play," said Onigbinde said.

"Nigerians are in a crisis period with the price of oil dipping below 30 dollars, so there should be a budget in line with the mood of the time," he added.

Buhari on Monday sacked the director-general of the budget office and appointed former banker Tijjani Abdullahi to take the helm.

Now there are serious revisions to be made before Buhari can sign off on the budget and inject Nigeria's sputtering economy with much-needed cash. It's a process likely to take months.

"We need more speed on this thing," Onigbinde said, "he (Buhari) should have moved faster when he got into power."

- Policy paralysis -

The budget confusion is yet another deterrent for investors already reluctant to invest in the country as a result of Buhari's monetary policies, which have caused a severe dollar shortage and the naira to hit unprecedented lows of 340 against the dollar on the black market.

Nigeria has frozen the naira at 197-199 to the dollar for almost a year in a bid to protect the poor, while the government has banned a wide range of imports -- including toothpicks and shovels -- to conserve foreign exchange reserves.

The policy has been criticised by international investors, who say pegging the currency and restricting imports is futile and only serves to suffocate growth.

Recent pressure from the International Monetary Fund to devalue the currency appears to have been rebuffed by Buhari, who declared last month "I won't kill the naira" and promised the country's economy will "stabilise soon".

"Investors aren't confident because there isn't a clear path forward," Rand Merchant Bank Africa analyst Nema Ramkhelawan-Bhana told AFP.

"As long as those budget delays are happening it means that the central bank is going to have to do the heavy lifting for the economy," she said, speaking from Johannesburg.

"The worst case scenario is policy paralysis, particularly what we've been seeing with the central bank and foreign exchange policy."

- Stoking inflation -

Instead of protecting the poor, the policy vacuum is stoking inflation on the streets of Lagos, Nigeria's commercial hub, where people bemoan the price of previously affordable staples.

"A plate of rice that was sold for 200 naira in December is now 350 naira. Customers are complaining because they don't get the same ration like before," street food vendor Mary Idowu told AFP.

A 50 kilogram (110 pound) bag of rice that used to cost 9,000 naira now costs 13,000, while a bag of beans has gone up from 12,000 naira to 15,000, she said.

"Whenever I try to explain why prices are high, they flare up," Idowu said about her customers.

Rising food costs pushed the inflation rate to 9.6 in January -- above the bank's target range -- with no sign the pressure will ease anytime soon.

"Prices are rising, despite attempts to keep the official Nigerian naira exchange rate unchanged," said Standard Chartered Bank economist Razia Khan.

"It is unfortunate that our policy makers are very slow at responding to critical issues," said Lagos Business School political economy professor Pat Utomi.

"The government should realise it cannot continue to defend the naira because it does not have enough reserves to do so," he said.

"Ultimately, the naira will find its true value whether we devalue or not."

https://www.yahoo.com/news/nigeria-struggles-buhari-wrangles-budget-naira-044450342.html

Getting really serious, gradually losing faith in buhari

OPEN LETTER TO PRESIDENT BUHARI

Title: DON'T PASS THE BUCK SIR!!!

written by: Dr Theophilus Aimiebenomon

Over the past one week, I have had a challenging task to ponder, cogitate, consider, deliberate, entertain, perpend and ruminate over the 2016 Nigerian National Budget presented by President Muhammadu Buhari and the hullabaloo that subsequently greeted the budget proposal.
And I have drawn up the following conclusions without any political bias:

1) President M. Buhari, as the President of Nigeria should know that the buck stops on his desk especially when it comes to matters as sensitive as the Budget.

2) President Buhari cannot claim complete ignorance of the irregularities and alleged padding of the budget and then shift the blame to his subordinates

3) How irresponsible can a President be to append his signature on a document without first reading through it, especially a document as sensitive as the Budget, which can either Make or Mar his government if found to be suspicious of any criminal intent, like what's happening now

4) According to Femi Aribisala, "Mr President did not just send the budget to the National Assembly, he presented it himself with great fanfare and bells and whistles. This was supposed to be his signature proposal"

5) Does it mean Mr President does not read documents before signing them? And who knows what he has been signing on behalf of Nigeria in his numerous foreign trips. Hence, we may just wake up one day and hear that Nigeria has been sold.

Therefore my TAKE(Hard and Tough):

1. President Buhari should immediately admit his failure and apologise to Nigerians ASAP, instead of trying to play the Hero by the SACK, SACK & SACK...and he's still sacking...; failure to do so would mean a total disregard to the interest and feelings of the over 170 million Nigerians who he claim to represent.

OR

2. Tender his RESIGNATION like it's done in more saner climes [VERY HARD AND TOUGH]

OR

3. If the aforementioned options fail, the National Assembly should do the needful and commence impeachment proceedings against the President [HARDER & TOUGHER]

GOD BLESS NIGERIA!!!

Feel free to comment and share until it gets to Mr President and the Senators.

DR THEOPHILUS AIMIEBENOMON
Follow me on Twitter @drtheo_omon

https://m.facebook.com/story.php?story_fbid=10208666029303646&id=1098108473

[b]....there are very many commentary on depreciation of ₦ nowadays expecially in parallel market, although parallel or black market can be manipulated by the traders, they either do it on their self interest, so those who doesn't beleive in the prosperity of nigeria can harbour $ as they can on imported goods hereby cause hike!
But in my own point of view the depreciation of ₦ is a great success to this nation if well manage to nigeria situation today. the looted fund is in $ and it must be refunded back in $, so if $1 is ₦198 when the money is looted, then if the money is refund today at $1 to ₦350 the nation has gained ₦152!
imagine if $1=₦1000, the gain is ₦902!
So in conclusion if the government managed to refund the $trillion looted and the refunded money, change it in parallel market, this will reduce the pressure on ₦ and the scarcity of $ in parallel market so the ₦=$.

(take note all the money took out of CBN during jonathan regime were changed in parallel market before ditributed)

you have other opinion?[/b]