Credit Rating Agency Foresees Statism as Core Principle of Buhari’s Second Term Agenda

By Eric Elezuo

Agosto and Co, Credit Rating agency saddled with the responsibility of providing unbiased expert analysis of various industries in the Nigerian Economy as well as gathering information about the market size and potential of an industry, its key players, competitors, products and financial condition amongst others, has said that there is a great tendency that the second term of President Muhammadu Buhari, will be channeled towards statism as a principle of government.

The agency, after thorough research centering on the line of actions of the administration’s first term and the prevailing economic situation, settled with the fact that the administration will tend to control all avenues of business in the economy, thereby making it a state controlled economy.

It made this remarks in a published document titled “Buhari Version II (2019—2023): Economic Perspectives” 

The research noted that “while the demand management policy of the Central Bank remains the biggest symbol of Mr. Buhari’s statist stance, there are quite a number of seemingly innocuous illustrations that support this assertion.”

It went on to elaborate these illustrations to include: “Firstly, some of the germane bold market reforms in the ERGP document such as the review of the pricing mechanisms for the key prices (exchange rates, electricity tariffs and petrol prices) to reflect fundamentals have been largely ignored. This has left the country with a burgeoning fiscal deficit (currently only three basis points shy of the 3% guidance in the Fiscal Responsibility Act).

“The second argument to demonstrate the statist stance of this administration would be the
abortion of its own reform programs. For instance, the planned concession of the major international airports in Lagos, Kano, Port Harcourt and Abuja by this administration and the cold trail of the process buttress this argument.”

Among other permutations, the research wondered if Buhari will continue with ‘his pursuit of statist policies or will he require a Damascene moment to metamorphosise from being a
reflexive statist into a free-marketer?’

Buhari has just been re-elected for a second tenure in office in an election that is still being contested in court by the main opposition candidate and party, Alhaji Atiku Abubakar and the Peoples Democratic Party (PDP).

Below is a detailed PDF copy of the research and its findings…


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