economy in Nigeria

Despite the reform efforts promoted by incumbent President Buhari, the economy has failed to take off. In 2015, Buhari inherited an economy weakened by its over-reliance on oil (as the prices dipped), as well as by public debt and corruption. Nigeria’s economy experienced a period of sustained growth at 5 to 8 % per year from 2000 to 2014, as long as oil prices were high. Afterwards, the economy slowed down considerably, recording negative growth (-1.6 %) in 2016 and reverting to low growth in 2017 (0.8 %). The oil and gas sectors are extremely important for the economy as a source of foreign exchange and in terms of their contribution to GDP. Fuels accounted for 92 % of the country’s merchandise exports in 2017. Buhari’s administration has tried to implement a series of reforms such as fighting corruption, stimulating other economic sectors than oil (such as agriculture and solid minerals), improving tax collection and fiscal discipline, and investing heavily in infrastructure. However, the outcome has been mixed, with some macroeconomic indicators indicating an improvement such as a rise in foreign reserves; a current account surplus and a reduction in inflation. The opposition candidate has promised to cut federal spending and privatise the oil sector. He wishes to promote more investor-friendly policies, is considering an amnesty for corruption suspects to help recover billions of dollars deposited abroad, and wants to create a US$25 billion fund to support private sector investment in infrastructure.