Thursday, September 03, 2015 11:00 PM / FDC
National Exhilaration turns into a sinking feeling - Action time is now !!
Judged against the post-election feeling of enthusiasm and exhilaration on May 29, the current underwhelming feeling of the Nigerian elite appears bizarre and contradictory. Why are they feeling so despondent and anxious? Is this the natural sequence that follows long waiting periods and anticipation??
In spite of this crisis of false expectations, the macro-economic scorecard reveals a balanced performance with major successes in power supply, petrol queues, restructuring of the oil sector and restoring the international reputation and pride of Nigeria. The salary arrears and contractor debts have been regularised and leakages are being blocked. The building blocks are being laid slowly. The truth is that it is taking too long.
The administration has not come out with a clear economic policy or blueprint. This macro-economic ambiguity is borne out of the sheer gravity of the problems and the dilemma that the possible options throw up. The recent plunge in oil prices in August is aggravating a difficult situation.
The impact of this policy void is increasing the tentativeness of investors and is being exacerbated by the rash of administrative measures.
The volatility in the Forex and interest rate markets is evidence of consumer and investor anxiety. A cabinet is likely to be announced in a few days and will douse most of these fears.
These are some of the burning questions addressed by Bismarck Rewane and his team of analysts, in this edition of the LBS breakfast session.