Financial Times UK Says President Buhari's Economic Policies is '' The Very Height Of Foolishness''

 The Financial Times UK, has described President buhari's  administration’s economic policies as the very ‘height of foolishness’.

Buhari since his emergence has focused more on clamping down on corrupt officials through the Economic and Financial Crime Commission, EFCC, alongside the Department of State Security Services, DSS.

Financial experts have time without number beckoned on the President to also look into the economy by making policies that will attract investors, boost local production and encourage export.

Although, much has not been done in the area of diversification of the nation’s economy as it is still heavily dependent on proceeds from crude oil, as several policies put in place by the apex bank have further compounded woes.

In reaction to the policies of the Government, the Comptroller-General of Customs, Col. Hameed Ali Rtd, has lamented the numerous controversial policies of the Central Bank of Nigeria, CBN, which he insisted have been hurting the country’s revenue generation drive.

  
In an article titled “Nigeria’s Sliding Towards Venezuela-Style FX Regime”, published by the Financial Times and written by Steve Johnson, the international business publication in an overview of Buhari’s economic performance said, “Copying Venezuela’s exchange rate policy and China’s failed equity market strategy might seem the height of foolishness.”

    It continued stating that: “But, at least in the opinion of John Ashbourne, Africa economist at Capital Economics, that is precisely what Nigeria, the continent’s largest economy, has just done.

    “Low oil prices are battering Nigeria’s export-dependent economy, but it’s the government’s market-distorting response that risks pushing the country into a Venezuela-style crisis,” Mr Ashbourne says.

    “Nigeria is sliding towards a Venezuela-style FX regime and adopting a Chinese-style stock market circuit breaker. Neither will reassure foreign investors, many of whom seem to be eyeing the exits.”

    “Both measures were announced after markets closed on Friday, January 15.

    “The circuit breaker on the Nigerian stock exchange, one of the worst performing in the world this year with a fall of 17.7 per cent, will pause trading for 30 minutes if stock prices fall 5 per cent. Trading will cease for the day if it is triggered twice in a session or after 1.45pm.

    “The effect is akin to calling last orders at a crowded bar,” Mr Ashbourne says. “It is hardly confidence-inspiring that Nigeria is copying a Chinese policy that is widely seen to have failed.”

See: APC was never prepared for governance – Akande

Nevertheless, Mr Ashbourne says that using a circuit breaker to shore up the market, rather than to avoid volatility, is “deeply flawed”.

    “Simultaneously, the central bank has said it will stop selling US dollars into the interbank FX market.”

He noted that international investors “are likely to remain on the sidelines,” barring an obvious catalyst for change.

He however, advocated for a devaluation of the naira to N250/$, in order to allow market forces rebound the economy amidst oil price slump.