On 7 July, President Muhammadu Buhari ordered the suspension of Ibrahim Magu, the acting chairman of the Economic and Financial Crimes Commission (EFCC), amidst allegations of gross misconduct. Since accusations of corrupt practices already surrounded Magu when he was appointed in 2016, the timing of yesterday’s suspension suggests that political motives are at play.… Read the rest
Both houses of the National Assembly continue to discuss the amended 2020 budget this week and are likely to pass it eventually with few alterations. Yet more than ever, the budget will remain a mere statement of intent, with available pointers suggesting budget implementation will lag even the revised revenue and expenditure targets for 2020.… Read the rest
On 13 May, President Muhamadu Buhari presented his new chief of staff, the veteran diplomat Ibrahim Gambari (75). Gambari presents a ‘like-for-like’ replacement for the late Abba Kyari. While loyalty was arguably a key selection criterion for Buhari, Gambari’s deep international contact network could prove useful in negotiations with international donors.… Read the rest
On 5 May, Finance Minister Zainab Ahmed hosted a “Citizens Dialogue Session on Government Fiscal Policy Decisions in Response to the Fall in Oil Prices and the COVID-19 Pandemic”. New forecasts presented at the event paint a bleak picture concerning the fiscal revenue situation, though it should be noted that previous budgets were overoptimistic in their projections.… Read the rest
Following IMF’s approval of USD 3.4bn emergency funding, it remains to be seen whether the fiscal crisis engendered by the Covid-19 pandemic may accelerate long-avoided macroeconomic and fiscal adjustments. The government signaled its willingness to engage in pro-market reforms in the run-up to the IMF’s decision; however, measures enacted so far do not go far enough and could be reversed quickly once the immediate crisis eases.… Read the rest
On 24 April, the Central Bank of Nigeria (CBN) apparently debited about 30 banks a total of NGN 1.47trn (USD 3.8bn) for failing to comply with regulatory thresholds. As the CBN’s monetary policy continues to oscillate between measures aimed at defending the naira and stimulating the economy, the CBN is again opting to prioritize the former.… Read the rest
On 17 April, Abba Kyari, President Muhammadu Buhari’s chief of staff, died after having contracted Covid-19 in March. Kyari was very close to Buhari and arguably the most powerful man within the administration.… Read the rest
During the 9 April OPEC+ meeting, Nigeria apparently consented to cut production to 1.4 million barrels per day (mbpd) in May and June, and to 1.5 mbpd from July until the end of the year.… Read the rest
● The government has requested a cumulative USD 6.9bn from multilateral institutions.
● While the government is keen to secure funding without committing to an IMF program, the Fund will likely want to see an up-front reform commitment.… Read the rest
