Nigerian Election Hinges on the Economy
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Terrorist organization Boko Haram is a primary issue in the upcoming elections in Nigeria, but the country’s declining economy is also on the minds of many voters. The government has yet to tackle high unemployment and rising costs.
Terrorist organization Boko Haram is a primary issue in the upcoming elections in Nigeria, but the country’s declining economy is also on the minds of many voters. The government has yet to tackle high unemployment and rising costs.
Analysts predict that opposition leader Muhammadu Buhari may defeat incumbent president Goodluck Jonathan. Opponents argue that Jonathan is not doing enough to combat Boko Haram, but Nigeria is an emerging market that is losing momentum rapidly. Standard & Poor may downgrade Nigeria’s credit rating due to economic instability and pushback of the election to March 20.
Nigerian Economy Continues to Decay
Nigeria currently has a BB rating, which is three steps below the investment standard, and corporate investment declined due to the unstable political situation. Critics of the Jonathan administration say he used the terrorism threat as an excuse to delay the democratic process and maintain his power, but his country is falling apart at the seams. People are discovering that they cannot afford the same goods because the currency has depreciated. Residents also contend with regular power outages, contributing to public frustration.
But low oil prices hit the economy hard because the nation relies heavily on oil revenue. Oil makes up 80 percent of the country’s revenue stream, including 90 percent of foreign exchange income. The OPEC nation exports roughly two million barrels of oil a day.
Solutions for the Nigerian Economy
Analysts say there are few good options, but reducing the country’s reliance on imports is a step in the right direction. Jonathan states that he intends to reduce the country’s reliance on oil revenue to mitigate the damage while diversifying the economy. He also pledged that the government would take a less active role in the economy and allow the private sector to take more of the reigns. But Buhari sees things a bit differently, believing that his staff members have the expertise to effectively manage the economy.
Who will win?
Given Buhari’s brief military dictatorship during the 1980s, which is marked with human rights abuses and curtailment of press freedom, it is safe to say that Buhari will take a more direct role in economic affairs. The election is still up in the air, but many Nigerians prefer Buhari, whose military background may come in handy when taking the fight to Boko Haram. Regardless of whom wins, bolstering exports, tackling infrastructure and strengthening the currency are key ways to get the Nigerian economy on steady ground.
