Nigeria’s economy suffers worse ratings under Buhari

Nigerians get a kick out of being called ‘the best’, ‘the largest’ or ‘the first’ in almost everything but since May 29, 2015, the country has been receiving the most negative ratings on its economy than ever before. Indeed, the Nigerian economy has become so battered that it is evident both in the cries of suffering Nigerians and abundant economic indexes about the country pointing downwards. The economy is not just suffering in Nigeria; it is affecting the country everywhere else. In fact, in the last 15 months since President Muhammadu Buhari took over the reins of power, Nigeria has lost three top economic positions that contributed greatly to the economy. Below are these positions.

Largest producer of oil in Africa
For a very long time, Nigeria held the exalted position of the largest oil producer in Africa until in April 2016; it lost the position to Angola. The country’s output fell from 2.2 million to its present level of 1.5million, which analysts say is a 30-year-low. And quoting IEA’s monthly Oil Market Report (OMR) for June, sweet crude reports says Nigeria might not regain the position until 2017.

“…the oil market was not expected to return to a surplus until in the first half of next year.

“Sustained attacks by militants have cut Nigeria’s oil production to 1.6 million from 2.2 million barrels per day which have led to the country losing its position to Angola as Africa’s top crude oil producer,” it wrote.

Africa’s most attractive destination for Foreign Investment
Also, Nigeria has lost its position as Africa’s top destination for foreign investments. This is said to be partly as a result of the uncertainties that followed the victory of President Buhari in the March 2015 elections. “South Africa has been ranked as the most attractive investment destination, extending its lead and maintaining its position as the leading economic powerhouse in Africa despite Nigeria’s rebasing its Gross Domestic Product (GDP) last year and rising to the top position of African economies.

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“Nigeria, Ghana, Morocco and Tunisia are the other top five economies in Africa respectively with Egypt slipping three slots to the sixth position. The other countries in the top ten positions are Ethiopia, Algeria, Rwanda and Tanzania with Kenya and Libya dropping out of the top 10. “2014 was a less favourable year for Africa’s investment attractiveness ratings,” the report released last week reads in part, adding that “Not only did the continent’s overall investment attractiveness deteriorate, but 22 countries received lower scores,” writes South Africa’s Rand Merchant Bank (RMB).

Largest economy in Africa
Just days ago, freshly released IMF data showed that Nigeria has also been overtaken by South Africa as Africa’s largest economy. As BBC reports, the index showed that Naira’s free-fall played a major role in the fall.

“On the basis of these numbers, there’s not a lot between the two. South Africa’s economy is worth around $301bn (£232bn) and Nigeria comes in at $296bn. The exercise in calculating the numbers using last year’s IMF figures and this year’s currency exchange numbers, technically puts South Africa back on top,” BBC wrote. Meanwhile, vice president, Yemi Osinbajo has revealed the economic agenda of the government in the bid to stabilize the tottering economy even as the harsh conditions bite harder.

Speaking at the 2016 presidential policy dialogue session which was organised by the Lagos Chamber of Commerce and Industry (LCCI) in Lagos on Thursday, August 11 Osinbajo said the government will release N100 billion in the next few days to increase money in circulation