Inside Nigeria
Buhari’s Re-Election Dangerous To Nigeria’s Economic Devt, Says Europe’s Largest Bank, HSBC
Nigeria’s current economic struggles look set to continue if President Muhammadu Buhari wins a second term in office, the multinational banking and financial services company, HSBC, has said.
The company stated this in a report by its Global Research unit, entitled, “Nigeria, papering over the cracks”, obtained by Saturday Telegraph yesterday.
According to the financial institution, although President Buhari’s “approval ratings sit near alltime lows, a development, it said, “largely reflects the impact of Nigeria’s painful recession in 2016-17 and the sustained economic hardship that has accompanied his presidency, including rapidly rising joblessness, and poverty,” the President will once again lead the APC into the 2019 elections. It, however, stated: “A second term for Mr Buhari raises the risk of limited economic progress and further fiscal deterioration, prolonging the stagnation of his first term, particularly if there is no move towards completing reform of the exchange rate system or fiscal adjustments that diversify government revenues away from oil.”
The multinational banking group, which is Europe’s largest by total assets, noted that while higher oil prices have brightened Nigeria’s macro outlook, boosting export earnings, improving the supply of foreign exchange, and supporting naira stability, the Buhari administration was yet to address the economy’s structural shortcomings. Specifically, it said: “Economic growth remains sluggish and reliant on the rebound in oil output while the non-oil economy, which accounts for about 90 per cent of GDP, continues to languish with many service sectors still mired in contraction.
Joblessness continues to rise, up almost three-fold in three years to 19 per cent in Q3 2017, pushing the number in poverty to 87 million. “Meanwhile, current account improvements may have pivoted on higher oil prices, but they also derive from on-going import restrictions and limited FX access for many sectors of the economy.
All told, we see growth capped at about 2.5 per cent over the next two years – a welcome recovery from the 2016 contraction, but less than half the rate of the previous cycle.” It further stated that in addition to failing to address the country’s ongoing reliance on oil revenues and the issue of inadequate nonoil tax collection, the administration was also grappling with the challenge of having a large share of its budget directed to debt service.
The company noted that while the Federal Government’s debt management strategy of issuing external debt to redeem more expensive short-term government securities is helping reduce debt service costs in the near term,it “exposes the fiscal position to exchange rate risk in the event of a future decline in oil prices and naira devaluation.” In addition, it stated that high oil prices has not translated into nonoil growth, adding that: “Nigeria’s reliance on fuel imports means rising international oil prices are pushing up the cost of fuel subsidies, estimated by the Petroleum Products Pricing Regulatory Agency (PPPRA) at USD250m in May alone.”
Besides, HSBC projected :” Oil prices at current levels therefore suggest a fuel subsidy that could total USD1.5bn in H2 2018, and about USD2.5bn for the year as a whole, which would equate to almost 20 per cent of last year’s gross oil revenue.” It, however, stated that while the, “polls look set to be a closely contested affair” and the, “political environment favours a return to power for the PDP, yet the opposition remains weak and fragmented, and has yet to declare its presidential candidate.” Senior Special Assistant on Media and Publicity to the President, Mallam Garba Shehu, declined comments on the report but referred our correspondent to the Chief Economic Adviser to the President. However, the referral could not be reached as at the time of filing this report.
Sunday@aristo
September 10, 2018 at 4:28 pm
The issue of power and d accompanied problems was created by the colonialist who allotted resources based on population, quantity and not quality because of their selfish interest and today some part of the counrty have larger share of power etcetera compared to others.
Mustapha Sani Jgw.
September 9, 2018 at 2:57 pm
We don’t really agree with your view.
Anonymous
September 8, 2018 at 9:38 pm
HSBC is missing LOOTERS money from Nigeria
Anonymous
September 8, 2018 at 9:05 pm
Dean Ikechukwu Onwubuya ,
Anonymous
September 8, 2018 at 8:24 pm
And also Dangerous for our health
Anonymous
September 8, 2018 at 7:47 pm
Stop criticise lifeless man a man without brain what can he do either travel to different countries he wasn’t opportunity buhari is a good man his problem is that he has no brain tell me how can someone without brain know what he is doing ?
Anonymous
September 8, 2018 at 7:36 pm
Brainless Buhari supporters I hope you ‘ve heard the message because na you people go cry pass when the time comes.
Anonymous
September 8, 2018 at 7:26 pm
Dead president
Anonymous
September 8, 2018 at 7:19 pm
Even though God came from heaven to address short sighted Buhari supporters, about the dangers of Buhari reelection, they will never listen
Anonymous
September 8, 2018 at 7:01 pm
Buhari will rule forever
Anonymous
September 8, 2018 at 5:41 pm
Pitiable l say
Anonymous
September 8, 2018 at 5:12 pm
Keep calling PDP, instead of you to rally around any young Nigerians coming out for Presidency like Moghalu and Sowore. Na una go cry sha if Buhari wins again.
Anonymous
September 8, 2018 at 4:57 pm
Fuck them
Anonymous
September 8, 2018 at 4:40 pm
PDP is at it again, what does the bank contribute to Nigeria
Anonymous
September 8, 2018 at 4:15 pm
The walking corpse.
Anonymous
September 8, 2018 at 4:14 pm
Buhari’s integrity is a scam
Anonymous
September 8, 2018 at 4:02 pm
Because nobody to loot nigeria treasury to develop Europe
Anonymous
September 8, 2018 at 3:45 pm
Abeg make una tell am oh!
Anonymous
September 8, 2018 at 3:27 pm
Not only dangerous to our economy, but also dangerous to our future.
Anonymous
September 8, 2018 at 3:12 pm
God deliver this nation from Buhari and APC
Anonymous
September 8, 2018 at 2:43 pm
Another media propaganda again
Anonymous
September 8, 2018 at 2:42 pm
Hohohohohohohoho! Baba olodo brain
Anonymous
September 8, 2018 at 2:26 pm
Hush money is no more flowing right?
Anonymous
September 8, 2018 at 2:25 pm
He ll close foreign clinic mrkt down, and take his medical history book to Afghanistan if u stop him come 2019..
Anonymous
September 8, 2018 at 2:24 pm
Buhari wants to make Nigeria lifeless like himself and God will not allow it .
Anonymous
September 8, 2018 at 1:44 pm
Even he rule Nigeria in next 20 years nothing will change
Sorry lifeless
Anonymous
September 8, 2018 at 1:38 pm
But we wouldn’t listen until the damage is done!
Anonymous
September 8, 2018 at 1:19 pm
No more looted funds to sustain your operations. Why not fold-up.We have more than enough better banks than HSBC operating profitably in Nigeria. Saraki hand now far away from Nigeria till.
Anonymous
September 8, 2018 at 2:52 pm
You’re an idiot! Myopic Fool
Anonymous
September 8, 2018 at 3:12 pm
Dont mind them, it is not the same Europe that put us where we are today? Idiots
Anonymous
September 8, 2018 at 1:18 pm
Because he now patronized China as against you
Anonymous
September 8, 2018 at 1:14 pm
Everybody knows it..Just that politics of bitterness is the order of the day in Nigeria & caused by Norhern Muslims mostly.
Anonymous
September 8, 2018 at 12:51 pm
Buhari bad mkt dem
Anonymous
September 8, 2018 at 12:39 pm
Hah heh eeyah
Anonymous
September 8, 2018 at 12:32 pm
Let’s contest this buharists
Anonymous
September 8, 2018 at 12:29 pm
Tell them if only they will listen
Anonymous
September 8, 2018 at 12:28 pm
HSBC bank are all p d p members
Anonymous
September 8, 2018 at 12:24 pm
Buhari is bad omen to Nigeria future
Anonymous
September 8, 2018 at 12:15 pm
Buhari the only person that has 150 cows for over 30 years with no single addition,how did you expect him to add value to we nigerians
Anonymous
September 8, 2018 at 12:12 pm
Buhari is evil
Anonymous
September 8, 2018 at 12:11 pm
Tell that to Fulani’s and Hausa’s who are lazy and lousy
Anonymous
September 8, 2018 at 2:26 pm
You little idiot wake up because we were never lazy, lazy people can never have multitude presidents in a single country, look at Buhari, Ibb, yar adua, shehu shagari, Abdulsalam abubakar etc, tell me how many presidents have your lazy ass people ever
Had
Anonymous
September 8, 2018 at 11:59 am
They are crazy with fake news
Anonymous
September 8, 2018 at 11:58 am
Illiterate cannot offer what he does not have
Anonymous
September 8, 2018 at 11:51 am
The west with their propaganda, they should hold their money
Anonymous
September 8, 2018 at 11:43 am
Northern leaders creating all manars of terrorist groups but they must know we are not afraid of their terrorist groups OK
Anonymous
September 8, 2018 at 11:43 am
THIS MAN PMB HE DON’T HAVE WIFE ANYMORE?
THIS IS SERIOUSLY PROBLEM TO THE ZOO GOVERNMENT.
THE SHOULD WARN TO BE WITH HIS WIFE ANYWHERE HE IS GOI.
AND ADVICE HIM TO CHANGE THIS HIS CLOTH HE CALLED WEAR.
SHAME TO THE ZOO GOVERNMENT OF NIGERIA.
HE GO AMERICAN SAME.
HE GO TO LONDON SAME.
HE GO TO CHINA SAME.
WHY WHY WHY. ZOORIA?
Anonymous
September 8, 2018 at 11:56 am
Mumu, zoon govt yet u re still living in d zoo
Anonymous
September 8, 2018 at 12:24 pm
lifeless Kehinde .
Anonymous
September 8, 2018 at 12:27 pm
Prince Kehinde Baiyerohi Kekinde this why all of you are a big fool cowards shame on you. saying you in live in the Zoo.
You stupid kehinde i can see. your very happy you live there .
You are Jobless man once your happy in the Zoo.
Lazy northern elements.
Don’t you see your profile photo.
Senseless animal you are.
You add your self with lifeless person picture means your also lifeless person.
You need to go and look for job you fool. You still hope in the Zoo.
So Animal like you don’t known that there is no a country called Zoo Nigeria.
Mind you coward. Zoo called Nigeria is Expired since 4 years ago. Which 2014.
But you fool Kekinde still hope you have a country.
IF YOU ARE ON TRAVEL. TRY MENTION THAT YOUR FROM THE ZOO CALLED NIGERIA IN ABROAD.
SEE YOU DEPORT IMMEDIATELY YOU ANIMAL.
Anonymous
September 8, 2018 at 12:30 pm
Nwakanma Chigaemezu Ezenwa Thanks my Bros Ezenwa. Kekinde is a lifeless person.
Anonymous
September 8, 2018 at 11:42 am
How long shall this Fulani terrorist government last with their agent of terror apc Buhari lifeless president of Fulani headsmen terrorist group???
Anonymous
September 8, 2018 at 11:47 am
Hahahahahaha, bros na their turn so any candidate they bring we will follow them more 4 years they will end another tribe take over