BudgIt, a Nigerian civic organization, has described the legacy that President Muhammadu Buhari leaves behind as being characterized by high debt, increasing inflation, and low growth.
The civic organization, which applies technology for citizen engagement with institutional improvement to facilitate societal change, stated this in a report titled ‘The Economic Legacy of the Buhari Administration,” which was issued on the eve of the inauguration of President-elect Bola Tinubu.
They alleged that the eight-year administration of President Buhari had driven Nigeria neck-deep into debt.
BudgIT said, “According to the Budget Office, between 2016 and 2022, the Buhari government raised total revenues of N26.67 trillion and expended N60.64 trillion, leaving a deficit of N33.97 trillion.
“The gaping hole was financed with FG domestic debt, which rose from N8.84 trillion as of December 2015 to N44.91 trillion as of June 2023, while external debt rose from $7.35 trillion in December 2015 to $37.2 trillion in June 2023.
“This excludes support provided by the Central Bank amounting to N25 trillion.” Ultimately, President Buhari moved Nigeria’s debt profile from N42 trillion to N77 trillion. This has had attendant effects on debt servicing, which rose from N1.06 trillion in 2015 to N5.24 trillion as of 2022. In fact, under President Buhari’s administration, the debt-service-to-revenue ratio grew from 29% to 96%.”
The group also chastised the Central Bank of Nigeria (CBN) for implementing monetary policies that exacerbated people’s hardship.
“During the administration of President Buhari, the Central Bank extended beyond its monetary policy remit, having a firm grip on fiscal policy with its outsized role.
“CBN policies increased the money supply from N18 trillion in 2015 to N55 trillion in 2023. While it provided unrestrained liquidity to the federal government, the apex bank abandoned its primary mandate of price stability.
“It continued to apply blunt tools by raising the Monetary Policy Rate from 12.5% in 2015 to 18% in April 2023. This did not taper the inflation rate, which has risen to 22.5%, while food inflation galloped to 24% as of April 2023.
“Food inflation has continued to rise despite over N800 billion spent by the Central Bank on the Anchor Borrowers’ Programme, which has been touted to have repayment challenges.”
Speaking on the situation of unemployment in the country, BudgIT said, “Unemployment rose from 10.4% in 2015 to 33.4% in 2020 under President Buhari’s watch as the clumsy exchange rate management—with a wide difference between the official and parallel market rates—made it difficult for businesses to thrive.”
Furthermore, it stated that “Buhari also prevaricated on the subsidy removal, which his administration spent at least N10 trillion to service. While Buhari’s government planned to have the subsidy removed as the price of crude rose, it failed to act and continued a wasteful venture that only required firm commitment to implement.
“While his administration wound up, it had the chance to seize another round of oil windfall with skyrocketing oil prices reaching $114 per barrel (April 2022), but with little incentive to do so as CBN “printing presses” continued to flood the system with liquidity.
“Nigeria’s oil production slipped below one million barrels per day at a time when oil economies skyrocketed to an unprecedented fortune. The attendant effect is that the non-oil share of public revenues grew rapidly from 44.6% in 2015 to 59.4% in 2022.
“However, Nigeria’s spending was untargeted, as several BudgIT analyses continued to show that the Nigerian budget was performing below par, with agencies spending public funds without the mandate to do so, foreclosing any chances of fiscal consolidation.”
President Buhari, whose eight-year tenure ends today, has, however, revealed in a nationwide broadcast that he is leaving Nigeria better than he found it.
