Buhari Vows to Get Nigerian Economy Back on Track

Newly elected president Muhammadu Buhari stated that Nigeria’s previous administration left the treasury “virtually empty,” according to Channel News Asia. The West African nation has suffered from such factors as rampant inflation and low oil prices, sending the economy into a tailspin. Nigeria is Africa’s largest and prosperous nation.

Newly elected president Muhammadu Buhari stated that Nigeria’s previous administration left the treasury “virtually empty,” according to Channel News Asia. The West African nation has suffered from such factors as rampant inflation and low oil prices, sending the economy into a tailspin. Nigeria is Africa’s largest and prosperous nation.

Buhari said that the next few months will be hard for Nigerians, but the president is confident that his government can recover billions of dollars in the short-term. Buhari was a general who first took power in a 1983 coup that overthrew former president Shehu Shagari. In his bid back to power, Buhari campaigned on a platform of strengthening the economy and protecting the nation from terrorist organization Boko Haram. The economy looms large for the president, and it remains to be seen if he can improve it.

International Business Times reports that predecessor Goodluck Jonathan left Nigeria with billions of dollars in debt. Buhari’s administration is dealing with a 7 trillion-naira deficit, or $35.2 billion. International and local debt stands at $60 billion. According to reports, Nigeria is facing impending collapse, with such sectors as police, military and civil service all in a state of free-fall. Goodluck Jonathan’s representatives have gone on record in saying that the facts are being misrepresented and used to discredit his administration.

Regardless of the political fallout, no one can deny that Nigeria is in a dire state. Lawmakers are proposing bailout legislation that would pay balances owed to public workers who have gone without pay for months, including additional money for cash-strapped state governments. Part of the problem has to do with Nigeria’s energy-dependent economy. Low oil prices continue to plague the country, which has placed the OPEC nation in a precarious position since 2014. Nigeria derives over two-thirds of its revenue from oil and gas production.

Internal factors are also at play, and Buhari will have to make reforms within the government. One example is the amount of pay that senators receive. Nigerian senators receive 506,000 naira each year, or $2,500 annually for clothes alone. Nigeria has the some of the highest paid politicians in the world, receiving up to 398 million naira a year, or $2 million, and over 70 percent of the national budget is devoted to salaries and other perks. Such policies send a wrong signal as many Nigerians remain in poverty, especially during a tough economy, and Nigerian politicians will continue to receive the same benefits and salaries as the economy decays. Goodluck Jonathan’s government has faced allegations of corruption, and Buahri has vowed to cut waste and uphold accountability for public figures.