Buhari: Slow Start or Guessing Game – LBS EBS – July 2015


 Friday, July 03, 2015 2:54 AM / FDC

The chatter in the market is about the cabinet yet to be formed as well as a clear direction to the market on key issues. Here are the most recent decisions on such to help place this in context:

1.    Obasanjo announced his cabinet on June 30, 1999.

2.    Yaradua announced his cabinet on July 26, 2007.

3.    Jonathan the incumbent announced his team on July 6, 2011.

Thus the average time between inauguration and cabinet is 5.7 weeks.

President Buhari needs to make haste slowly, knowing that it is impossible to make omelette without breaking eggs. There is never an ideal situation but usually an optimal solution. Key decisions that are pending are petroleum subsidies, anti-corruption indictments and sensitive non-cabinet appointments of the presidency.

The implications of a fast changing political and economic situation and its impact on businesses are discussed at the July LBS Executive Breakfast session with B.J. Rewane and the FDC team.




Highlights- Making Omelette without Breaking Eggs


·         Handover seamless with great citizen expectations as the sizzle appears to fizzle

·         Rhetoric long, actions short YET In politics all things are possible

·         NASS in fisticuffs over leadership positions as Senate President goes rogue on APC, so also the speaker

·         FAAC allocation marginally up to N409bn; Average oil price at a 2-month low of $63pb as Nigeria’s output now down to 1.85mbpd, denting the fiscal revenue and undermining the FGN’s ability to bail out state governments

·         CBN forced to resort to administrative controls to support the naira BUT for how long?

·         A.C. Nielsen says consumer confidence in Nigeria is at a record high of127 (Consumer confidence index measures availability of discretionary funds and optimism)

·         JP Morgan’s threat to delist Nigeria from the bond index is riling markets

·         The divergence between parallel and IFEM market now at its widest 16.2% or N31



Disclaimer/Advice to Readers:
While the website is checked for accuracy, we are not liable for any incorrect information included. The details of this publication should not be construed as an investment advice by the author/analyst or the publishers/Proshare. Proshare Limited, its employees and analysts accept no liability for any loss arising from the use of this information. All opinions on this page/site constitute the authors best estimate judgement as of this date and are subject to change without notice. Please note that no opinion, commitment or representation expressed or implied by the sender necessarily constitutes the opinion*,* commitment or representation of Lagos Business School/ Pan-Atlantic University (LBS/PAU) and no such opinion, commitment or representation shall be binding on LBS/PAU excepting where same has been so communicated and affirmed in writing by a duly authorised representative of LBS/PAU. LBS/PAU shall not be responsible for any loss, damage, claim or any inconvenience whatsoever that may be suffered as a result of a reliance on the contents of the email or attachments thereof. We recommend that you make enquiries based on your own circumstances and, if necessary, take professional advice before entering into transactions. This article is published with the consent of the author(s) for circulation to the online investment community in accordance with the terms of usage. Further enquiries should be directed to the author whose e-mail is Financial Derivatives Company Limited [E-mail:



Related News