₦airaland Forum

Jan 30th 2016 | LAGOS

MORE than 30 years ago, a young general swept to power in the fifth of Nigeria’s military coups since independence in 1960. The country he inherited was a mess: bled dry by pilfering politicians within and hammered by falling oil prices without. Last year that general, Muhammadu Buhari, became president again—this time in a democratic vote. The problems he has inherited are almost identical. So are many of his responses.
In the eight months since Mr Buhari arrived at Aso Rock, the presidential digs, the homicidal jihadists of Boko Haram have been pushed back into the bush along Nigeria’s borders. The government has cracked down on corruption, which had flourished under the previous president, Goodluck Jonathan, an ineffectual buffoon who let politicians and their cronies fill their pockets with impunity. Lai Mohammed, a minister, reckons that just 55 people stole $6.8 billion from the public purse over seven recent years.

Mr Buhari, who—unusually among Nigeria’s political grandees—is said to have just $150,000 and a couple of hundred cattle to his name, abhors such excess. As military ruler he jailed, fired or forced into retirement thousands of bureaucrats whose fingers had been in the till. This time, the Economic and Financial Crimes Commission (EFCC) has arrested dozens of bigwigs, including a former national security chief accused of diverting $2.2 billion. The EFCC has a poor record of securing convictions; but a single treasury account has been introduced to try to stop civil servants siphoning off cash. And agencies which may not be remitting their fair share to the state are having their books trawled by Kemi Adeosun, the finance minister.
Such measures are doubly important because the economy is swooning along with the oil price. The sticky stuff directly accounts for only 10% of GDP, but for 70% of government revenue and almost all of Nigeria’s foreign earnings.

Oil’s price has fallen by half, to $32 a barrel, in the months since the new government came to power, sending its revenues plummeting. Income for the third quarter of 2015 was almost 30% lower than for the same period the year before, and foreign reserves have dwindled by $9 billion in 18 months. Ordinarily there would be buffers to cushion against such shocks, but Mr Jonathan’s cronies have largely squandered them. Growth was about 3% in 2015, almost half the rate of the year before and barely enough to keep pace with the population. The stockmarket is down by half from its peak in 2014.
Domestic oil producers are feeling the pinch worst. Many borrowed heavily to buy oilfields when crude was worth more than $100 a barrel, and are now struggling to pay the interest on loans, says Kola Karim, the founder of Shoreline Group, a Nigerian conglomerate. This, in turn, threatens to create a banking crisis. About 20% of Nigerian banks’ loans were made to oil and gas producers (along with another 4% to underperforming power companies). Capital cushions are plumper than they were during an earlier banking crisis in 2009; but, even so, bad debts are mounting and banks that are exposed to oil producers may find themselves in trouble. “It wouldn’t surprise me if one or two went down,” says a senior banker in Nigeria.
The government’s response to the crisis has been three-pronged. First, it is trying to stimulate the economy with a mildly expansionary budget. At the same time, it is trying to protect its dwindling hard-currency reserves by blocking imports. Third, it is trying to suppress inflation by keeping the currency, the naira, pegged at 197-199 to the dollar. Only the first of these policies seems likely to work.
The budget, which includes a plan to spend more on badly needed infrastructure, is a step in the right direction. Although government revenues are under pressure from the falling oil price, Mr Buhari hopes to offset that by plugging “leakages” (a polite term for theft) and taxing people and businesses more. That seems reasonable. At 7%, Nigeria’s tax-to-GDP ratio is pitifully low. Every percentage point increase could yield $5 billion of extra cash for the coffers, reckons Kayode Akindele of TIA Capital, an investment firm. Mr Buhari also plans to save some $5 billion-$7 billion a year by ending fuel subsidies—a crucial reform, if he sticks with it. Even so he will be left with a deficit of $15 billion (3% of GDP) that will have to be filled by domestic and foreign borrowing.

Yet his policies on the currency seem likely to stymie that. The central bank has frozen the naira at its current overvalued official rate for almost a year. The various import bans (on everything from soap to ballpoint pens) are supposed to reduce demand for dollars, but have little effect. Businesses that have to import essential supplies to keep their factories running complain that they have been forced into the black market, where the naira currently trades at 300 or more to the dollar. Several local manufacturers have suspended operations. International investors, knowing that the value of their assets could tumble, have slammed on the brakes and some have pulled money out of the country just as their dollars are most needed (see chart).
Nigeria is fortunate in having low levels of public debt (less than 20% of GDP), but it is not helped by high interest rates, which mean that 35% of government revenue goes straight out of the door again to service its borrowings. It would not take much to push it into a debt crisis.

http://www.economist.com/news/middle-east-and-africa/21689584-cheap-oil-causing-currency-crisis-nigeria-banning-imports-no

That man deserves to be called worse.

In mama piss' voice:
Chaai! Ecolomiki, all dis name wey una dey call my husman.... Diariz gorduo

Wailers must hear this!

Buffoon...

I refuse to believe this. the Economist is not written. by Lai Mohammed.

Also, check my signature. now u've checked it. now u see nothing there.

#Political Idiot

There you have it. Treat your dad/child/wife/etc the way you want others to treat them.
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We abuse GEJ and PMB without realizing that we are inadvertently desecrating the seat of The President, Federal Republic of Nigeria. Other Nationals now have the temerity to call a former Nigerian president a Buffoon. Would they address president Obama or Bush like that?

Sadly, this despicable tag on GEJ will resonate with a lot of Nigerians who will throng this forum to validate their prejudice, instead of them to call the newspaper to order. It is totally unacceptable for the Economist to address a Nigerian president with those words.
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Irrespective of whatever grudges we may have, I think it's better to focus on criticizing the policies, actions or inactions of the president (GEJ/PMB) rather than hauling insults on their person.

They just insulted the office he once held, we as nigerians are setting bad precedence for others to gladly follow,we insult the office of the president with reckless abandon and we expect the international community not to follow suit? It is jonathan today,it might be buhari tommorrow.

He deserved to be described by worse words.

As much as I think President Jonathan was ineffective as president, I think the Economist needs to tone it down with the name calling. Tagging him a buffoon is obviously a way to get more attention and more people to read this article which I must say does not have much (I dare say any) content.

They need to get back to writting articles they are known for like the one that made Nigerian soldiers chase after newspaper vehicles in a bid to stop them from getting to the stands in 2014(or was it 2015?).

And for President Buhari's supporters, dont celebrate, the economist is not known to pick sides. I can bet they will soon throw out another article to diss the president and yes, call him names.

But Buffoon though……ouch.

This is gonna strike some nerves

.

@op lie! So u post a 30th Jan 2016 edition on 27th abi. Another propaganda.

[s]

EdCure:
Jan 30th 2016 | LAGOS

MORE than 30 years ago, a young general swept to power in the fifth of Nigeria’s military coups since independence in 1960. The country he inherited was a mess: bled dry by pilfering politicians within and hammered by falling oil prices without. Last year that general, Muhammadu Buhari, became president again—this time in a democratic vote. The problems he has inherited are almost identical. So are many of his responses.
In the eight months since Mr Buhari arrived at Aso Rock, the presidential digs, the homicidal jihadists of Boko Haram have been pushed back into the bush along Nigeria’s borders. The government has cracked down on corruption, which had flourished under the previous president, Goodluck Jonathan, an ineffectual buffoon who let politicians and their cronies fill their pockets with impunity. Lai Mohammed, a minister, reckons that just 55 people stole $6.8 billion from the public purse over seven recent years.

Mr Buhari, who—unusually among Nigeria’s political grandees—is said to have just $150,000 and a couple of hundred cattle to his name, abhors such excess. As military ruler he jailed, fired or forced into retirement thousands of bureaucrats whose fingers had been in the till. This time, the Economic and Financial Crimes Commission (EFCC) has arrested dozens of bigwigs, including a former national security chief accused of diverting $2.2 billion. The EFCC has a poor record of securing convictions; but a single treasury account has been introduced to try to stop civil servants siphoning off cash. And agencies which may not be remitting their fair share to the state are having their books trawled by Kemi Adeosun, the finance minister.
Such measures are doubly important because the economy is swooning along with the oil price. The sticky stuff directly accounts for only 10% of GDP, but for 70% of government revenue and almost all of Nigeria’s foreign earnings.

More at http://www.economist.com/news/middle-east-and-africa/21689584-cheap-oil-causing-currency-crisis-nigeria-banning-imports-no

[/s]

Nonsense.
Liar Muhamed, You cannot gain any relevance for buhari by paying Economist to write trash for you.

That's why your ministry was given 39 billion to keep churning out rubbish!

We expect to see more vindictive posts from you in future, but know one fact, Jonathan bone don hang for una throat!

While you and your clueless oga struggle to fill his shoes the guy keeps getting more accolades internationally. He is still a very potent threat to you guys. Deal with it.

Very confused newspaper. I believe this article was written by a zombie for the economist. They only told us Buhari's responses to the problems he inherited were almost identical to those during his first stint as military dictator. This is indeed shameful.. We all know buhari's first stint was disastrous on the Nigeria's economy making him to be sacked, so also now he is a democratic president, disastrous! Buhari has not changed..

EdCure:
Cc: Seun, mynd44, lalasticlala, obinoscocpy.

Wailers must hear this!

Exactly. Shey when dem talk Baba own, e make fp, I see no reason why this couldn't!

Jogogoro El Clueless Ritardinho Fortunato, the Ineffectual Buffoon 1 of Planet Earth!

The pic below shows him in his elements, totally inebriated, pretending to know what's up.

Where is Keneking sef?

Where the hell is Modath sef?

Super1Star:
He deserved to be described by worse words.

who is the governor of Rivers state?

EdCure:
Jan 30th 2016 | LAGOS

Which kind future article be this?

Mynd44:
As much as I think President Jonathan was ineffective as president, I think the Economist needs to tone it down with the nane calling. Tagging him a buffoon is obviously a way to get more attention and more people to read this article which I must say does not have much (I dare say any) content.

They need to get back to writting articles they are known for like the one that made Nigerian soldiers chase after newspaper vehicles in a bid to stop them from getting to the stands in 2014(or was it 2015?).

And for President Buhari's supporters, dont celebrate, the economist is not known to pick sides. I can bet they will soon throw out another article to diss the president and yes, call him names.

But Buffoon though……ouch.

This is gonna strike some nerves

Bross, d article long wella I just had to cut it short there.

Modified:
Full story posted

tuniski:
@op lie! So u post a 30th Jan 2016 edition on 27th abi. Another propaganda.

The fact that it wasn't published today means they lied about that corrupt and incompetent buffoon?

abe4kom:
[s][/s]

Nonsense.
You cannot gain any relevance for buhari by paying Economist to write trash for you.

It doesn't matter if they were paid or not. What matters is that they "praised" the Clueless Shoeless Drunken Retardeen by referring to him as an Ineffectual Buffoon, and they are a Credible source.

When those other guys castigated Baba's economic policies, they weren't paid shey??

Una never see anything.

Make una go pay dem make dem tag Baba if e pain una so much.


Ekpas- great unrelenting knights in shining armour for Ineffectual Buffoons!

Just look at the baggy eyelids below, they scream drunkenness!!

Djicemob:
Which kind future article be this?

Dat one mean say Jona has a future in Kuje prison

See tears from Wailers flooding the thread, turning it into a Lagoon. Make I grab my life jacket joor oo.

This place now reeks of Wailing Cankerworms.

An ineffectual buffoon he really is. The Economist has baptized Jonathan. Thats his new name.

always remember, stealing is never corruption - GEJ. GFR, OND, BUFFOON...

EdCure:
Dat one mean say Jona has a future in Kuje prison

I tell ya.

These Wailing Cankerworms are so funny. They can't construct a sentence without insulting the sitting president, but get all roughed up when the useless ex-president is pelted with as little as a bubble gum.

#Ineffectual Buffoons.

EdCure:
Bross, d article long wella I just had to cut it short there.

You should paste the full version. I read it though.

tuniski:
@op lie! So u post a 30th Jan 2016 edition on 27th abi. Another propaganda.

Though I don't agree with the epithet which shows lack of decorum on the part of an International News Magazine but I guess you were not around in the days of TELL, The News and other magazine.
They are usually dated a week from date of production.

OgbeifunErom:

Sorry I totally disagree with you!

They have used the best word to describe the worst President Nigeria has ever had.

He is nothing but a Buffoon and an inglorious fool.

What else can they call a man that presided over the greatest heist ever seen in Africa? A man that opened the floodgates of Nigeria's public finance infrastructure to all his friends all because he wanted to win a second term.

Actually, the Economist is quite liberal. For them to have qualified the retar.d called Jonathan as a buffoon, they must have access to information that supports that qualification.

I will be very happy for them to judge Buhari in same manner if he fails.

woww...your mind is a mess....its better you stop watching western tv.....

watch nollywood,,,its a good therapy for you.....

Progressive01:
It doesn't matter if they were paid or not. What matters is that they praised the Clueless Shoeless Drunken Retardeen an Ineffectual Buffoon, and they are a Credible source.

When those other guys castigated Baba's economic policies, they weren't paid shey??

Una never see anything.

Make una go pay dem make dem tag Baba if e pain una so much.


Ekpas- great unrelenting knights in shining armour for Ineffectual Buffoons!

We need not pay anybody to write for us, the world has taken notice and the "buffoon" is racking up the accolades to the chagrin of your discombobulated cow charmer!

If e pain una, make e pain una. We heard more names before than now. So with the daurasaurus in power we expect you guys to rachet it up. Why wait?

arresa:
The fact that it wasn't published today means they lied about that corrupt and incompetent buffoon?

it is a lie only haters without decorum use such language so similar to careless zombies. Yes, it is.