Wednesday, April 20, 2011

Negative Effects of April's Crises in Nigeria

               Assessing the impact and the implications of the crises, finance experts and industry analysts explained the negative effects of the crises on the economy and the outside investors who may want to invest in the Country.
                This is not in accordance to what some Christians quote saying that from the days of John the Baptist till today, everything is violence. But in this case, they do not seem to take the Presidential seat by violence, it is due to the announcement of the Saturday’s poll that we casted that retained the President of the Federal Republic of Nigeria, President G. E. J. on the seat which made some Northerners to start butchering other people from Monday that the news was broken. I wish to stop here and ask, must everybody lead? Have you seen any aspirant done the kind of campaign that our able and productive president did? My father always tells me that I should test myself with others to know whether I’m fully prepared. When you run alone, you think that you are the best, but test your ability with others to know your fate!
              According to him, nothing much is expected to change with the emergence of Goodluck Jonathan as president-elect because he is expected to continue with his ongoing policies.
"I don’t expect any change in economic and government policy. We already have an idea of the things he would be doing and the things he would not do,” Mr. Rewane added.
He said there was really no cause for alarm or anxiety, if every other factor was normal. “If oil production remains high, and oil prices are high, the economy would be relatively stable. However, I think it is still too early to place assumptions and forecast. The next few days, we would be in a better position to estimate and forecast on various economic variables and on the economy,” he further said.
The president is expected, among other things, to reform the power sector, sign the Petroleum Industry Bill, restructure the Nigerian National Petroleum Corporation, constitutionally preserve an oil-price based fiscal savings programme, boost infrastructure development, and improve execution of public affairs.
                                          Investment implications
According to him, this year’s presidential contest unfolded without any major irregularities that could undermine the credibility of the vote and the process appears to have been transparent.
“While some protests broke out in the northern parts of the country and the Congress for Progressive Change has rejected the poll results, we do not, however, foresee a drastic spike in violence across Nigeria in the coming days and weeks, even if the opposition disputes the outcome of the vote in court (as it did in 2003 and 2007).
“In our view, the relatively smooth electoral cycle in most of the country will be positively perceived by international investors, with the potential to mitigate previous concerns over Nigeria’s short-term political outlook. We think Jonathan’s decisive win will ease investor concerns, both domestically and Internationally,” Mr. Gadio said.
He added that the transparent presidential election will boost Nigeria’s institutional and democratic credentials, but the key test will be the extent to which Mr. Jonathan’s administration is able to reform the power sector and other critical areas.
“Such policy steps are urgently needed to unlock the country’s significant investment and economic potential,” he said.
Since May 2010 that Mr. Jonathan has been the nation’s president, he has embarked on a few policies which include the series of power reforms, and he recently launched gas revolution which would require millions of dollars as foreign direct investment.

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