President Muhammadu Buhari was on Wednesday, May 29, sworn in for a second term after being re-elected in the February 23 poll, defeating his closest rival, Atiku Abubakar of the PDP.
As President Buhari begins his final four-year term, Bloomberg presents a chart showing some of the economic progress and challenges that marked his first term in office.
The chart above shows Nigeria's inflation rate. The inflation rate has been above the Central Bank of Nigeria (CBN)’s target of 6% to 9% ever since President Buhari took power in May 2015.
Though price growth has reportedly eased from the level of almost 20% it reached in 2016 when the CBN loosened the naira peg, investor uncertainty over a multiple exchange rate system and high food costs keep inflation elevated.
Nigeria's economy contracted in 2016 for the first time in 25 years as oil output slumped. In the last two years, the economy has improved but the growth still lags an increasing population, a situation that made Nigerians to become poorer as the country becomes the world's poverty capital.
A data compiled by Bloomberg indicates the Nigerian stock market delivered one of the worst returns globally, a development the global media attributed to disappointing corporate earnings, weak sentiments and President Buhari’s alleged reluctance to push market friendly reforms.
The naira has lost 45% of its value against the dollar as a sharp drop in oil prices reduced export earnings which make up about 95% of Nigeria’s dollar income.
The CBN loosened a currency peg in 2016. However, to accommodate political resistance against further devaluation, the central bank created a system of multiple exchange rates that critics say is not transparent and subject to abuse.
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Meanwhile, Legit.ng previously reported that a former deputy national publicity secretary of the All Progressives Congress (APC), Comrade Timi Frank, on Sunday, June 2, accused the federal government of deepening poverty in the country with its polices.
Frank was reacting to a report by The Economist Magazine that “Nigerians have become the poorest citizens of a country in the whole world, under President Muhammadu Buhari’s first term in office.”
According to Comrade Frank, the gradual extermination of Nigerians through poverty is an incontrovertible fact that the present government has refused to acknowledge.
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Nigerians set 2nd term agenda for President Buhari | Legit TV