Since Nigeria’s President Mahammadu Buhari took office in May, he has taken time to implement policies which has halted decision-making, hindering national budget planning, new roads and art exhibitions among other things.
Buhari’s ministerial candidates had a complete screening by the senate on Thursday with no approval making the country’s economy run without a government in place. Only half of the 36 candidates have been given the green light after three weeks of screening.
The President has begun reforms of the oil sector and the fight against corruption the reason why Africa’s biggest oil producer has at least 170 million people living in poverty irrespective of Nigeria’s extreme wealth.
There has been praise for the President’s bail out of the federal states and audits designed to root out graft but with a failing economy, investors are beginning to question why Buhari took four months to name a cabinet that has the same familiar political people.
“As we get closer to the budget cycle deadline and important decisions on subsidies and taxation need to be taken, the absence of a cabinet will likely become more glaring.” said Razia Khan, Chief Economist at Standard Chartered Bank.
Nigeria’s Parliament usually presents the annual budget in November but at the moment there seems to be no draft ready for a planned supplementary budget for this year or next year’s proposal. With a need for cutting on spending the discussions are likely to take more time this year.
Basic ministry work such as aid projects or state sponsored art exhibitions have been hindered by the lack of government. Undersecretaries are afraid to sign off on anything making it hard for diplomats and business people to operate.
But in the absence of ministers, reforms aired before the election – such as curbing food imports to boost domestic farming – are stuck on the drawing board, and without any consideration for their consequences.
