Nigerian President Goodluck Jonathan’s Concession Speech

I thank you all for turning out en-masse for the March 28 General Elections.

I promised the country free and fair elections. I have kept my word. I have also expanded the space for Nigerians to participate in the democratic process. That is one legacy I will like to see endure.

Although some people have expressed mixed feelings about the results announced by the Independent National Electoral Commission (INEC), I urge those who may feel aggrieved to follow due process based on our constitution and our electoral laws, in seeking redress.

As I have always affirmed, nobody’s ambition is worth the blood of any Nigerian. The unity, stability and progress of our dear country is more important than anything else.

I congratulate all Nigerians for successfully going through the process of the March 28th General Elections with the commendable enthusiasm and commitment that was demonstrated nationwide.

I also commend the Security Services for their role in ensuring that the elections were mostly peaceful and violence-free.

To my colleagues in the PDP, I thank you for your support. Today, the PDP should be celebrating rather than mourning. We have established a legacy of democratic freedom, transparency, economic growth and free and fair elections.

For the past 16 years, we have steered the country away from ethnic and regional politics. We created a Pan-Nigerian political party and brought home to our people the realities of economic development and social transformation.

Through patriotism and diligence, we have built the biggest and most patriotic party in Nigerian history. We must stand together as a party and look to the future with renewed optimism.

I thank all Nigerians once again for the great opportunity I was given to lead this country and assure you that I will continue to do my best at the helm of national affairs until the end of my tenure.

I have conveyed my personal best wishes to General Muhammadu Buhari.

May God Almighty continue to bless the Federal Republic of Nigeria.

Source: The Daily Post

Africa’s Billionaires in 2014

Only 9 out of 54 African countries are represented on the 2014 Forbes billionaires list. There are certainly more than 29 dollar billionaires on the Continent (most of the rest being in politics). Let’s consider this list as representative of countries in which (for whatever reason) it is politically safe to be publicly super wealthy – which in and of itself says a lot about how far Nigeria has come.

Screen Shot 2015-03-03 at 12.24.39 PM

Source: Forbes

Some will look at the list and scream inequality. I look at the list and see the proliferation of centres of economic and political power. And a potential source of much-needed intra-elite accountability in African politics. For more on this read Leonardo Arriola’s excellent book on the role of private capital in African politics.

See also this FT story on the impact of currency movements on the wealth of Nigeria’s super rich. Forbes also has a great profile of Aliko Dangote, Africa’s richest man.

Making Sense of the Decision to Postpone Nigeria’s February 14 Elections

Last Saturday Nigeria’s electoral management body (INEC) postponed the February 14th national elections to March 28th. State elections were also moved from February 28th to April 11th. The official account is that INEC reached the decision after it became clear that the military would not guarantee security on election day (and therefore needed six weeks to pacify the northeast before reasonably peaceful elections could take place).

The head of INEC, Attahiru Jega, was categorical that “for matters under its control, INEC is substantially ready for the general elections as scheduled, despite discernible challenges being encountered with some of its processes like the collection of Permanent Voter Cards (PVCs) by registered members of the public.”

Naturally, the postponement raised a lot of questions.

Boko Haram has been terrorizing Nigerians for the better part of six years. It is therefore a little odd that the military suddenly found the magic formula to quell the insurgency in exactly six weeks. Why now?

Reactions from several commentators questioned the intentions of the Nigerian military, and by extension, of the Goodluck Jonathan Administration.

  • At the New Yorker Alexis Okeowo wonders why after six years the government has suddenly found the will and power to neutralize Boko Haram in six weeks. She argues that negative sectional politics prevented Jonathan, a southerner, from extinguishing the Boko Haram before the insurgency (mainly concentrated in the northeast) got out of hand. Okeowo also pours cold water on any hopes that a Buhari presidency would be any better for either Nigerian democracy or nation-building.
  • Tolu Ogunlesi at FT invokes the events of 1993 – that saw Moshood Abiola robbed of the presidency after an election – in arguing that the postponement might, among other things, be a sign of both a resurgence of the Nigerian military and an attempt by the same to prevent Buhari (who is perceived to harbor intentions of reforming the military) from becoming president.
  • Both Karen Attiah (Washington Post) and Todd Moss (CGD) see in the postponement a risky gamble by Jonathan and the military that might pay off (and result in a reasonably acceptable conduct of elections in six weeks) or completely backfire and mark the beginnings of a period of political instability in Nigeria.
  • Alex Thurston over at Sahel Blog notes that while the Jonathan campaign has praised INEC’s decision, the Buhari camp has expressed “disappointment and frustration [with] this decision.” But at the same time Buhari urged all Nigerians not to take any actions that might further endanger the democratic process in the country. Whether the opposition will heed Buhari’s call will crucially depend on the outcome of the March 28th contest.
  • Chimamanda Adichie, writing in the Atlantic, terms the postponement “a staggeringly self-serving act of contempt for Nigerians” that unnecessarily introduces even greater uncertainty into Nigeria’s political climate [ incidentally, following the postponement Nigeria’s overnight lending rate soared to 100 pct and the Naira hit 200 against the US dollar on Tuesday].

At face value, INEC’s decision seems reasonable. The security situation in the northeast makes it impossible to conduct a credible election. Plus, given Nigeria’s election law, it’s probably in the interest of the opposition candidate, Muhammadu Buhari, for elections to be conducted in the northeast (the winner needs a plurality of votes, and at least 25% in two thirds of the states and Abuja). The decision is also squarely constitutional. Like most Commonwealth states, election dates in Nigeria are not constitutionally fixed, and can be moved by the EMB. The only constraint on INEC is that elections must be head by April 29th, a month ahead of the constitutionally-mandated handover date of May 29th. Lastly, postponement buys INEC more time to issue permanent voter cards (PVCs). As of February 4th, only 44 out of 68.8 million potential voters had been issued with a PVC, a requirement to be able to vote (Lagos, a Buhari stronghold, had an issuance rate below 40%). These reasons might explain Buhari’s reluctant acceptance of the INEC decision.

That said, the timing of the postponement and the manner in which it was done are suspect. The Nigerian security establishment understood the challenge that Boko Haram posed with regard to the conduct of peaceful elections years in advance. So why act a week before the election? In addition, it was quite clear that the directive did not come from the generals per se, but from Aso Rock via the national security adviser Mr. Sambo Dasuki. The result is that the military has come off as an interested player in the election. At the same time, Mr. Dasuki’s involvement has dented (even if just slightly) INEC’s credibility as an independent arbiter in the process. As is shown below, Nigerians’ trust of the electoral process is already very low.

Confidence in the integrity of Nigerian elections

Confidence in the integrity of Nigerian elections

For the incumbent Goodluck Jonathan, the postponement presumably buys more time to try and dampen Buhari’s momentum. Some have argued that it also allows him to device ways of ensuring a victory, whether through clean means or not. My take on this is that this strategy will probably backfire. First, it signals to voters weakness and unfair play – things that might anger fence-sitters and make them break for Buhari come March 28th. Second, the election monitoring literature tells us that smart incumbents rig elections well in advance. This is for the simple reason that election day rigging (or rigging too close to the election) is often a recipe for disaster (see Kenya circa 2007).

These elections will be the closest in Nigeria’s history. The polls are essentially tied. The current postponement will no doubt raise the stakes even higher ahead of March 28th. Furthermore, the shenanigans of the past week will increase pressure on INEC to conduct clean elections, especially in the eyes of Buhari supporters.

Ultimately the folly of the postponement may be that it has raised the bar too high for INEC. Nigeria might find itself in a bad place if Buhari loses an election marred by chaos and irregularities.

Is Nigeria’s Economy Overrated?

Here is Izabella Kaminska of the FT:

Source: Financial Times

Source: Financial Times

On the surface, Nigeria’s oil sector has dropped in significance to a mere 13% of real GDP, while the services sector has climbed to 40% in real terms. Yet, the reality is that it is the country’s oil revenues that have supported growth and, to a large extent, maintained social order. Without oil, both would fall apart; government spending would be much smaller, interest rates much higher, and the currency’s valuation much lower.

….. the country’s domestic savings rate, at a measly 20 per cent of GDP, is extremely low for a developing economy at this stage. A key reason being the government’s inability to tame chronically high inflation, meaning bank deposits have earned negative real interest rates for most of the past decade.

More on this here (HT Tyler Cowen).

And by the way, on this score Nigeria is not alone.

In an instance of the triumph of hope over experience The Economist recently pronounced the end of the resource curse in Africa. I do not completely buy their argument. Yes, growth and investment across the Continent may no longer be tightly coupled with natural resource cycles. But from Ghana, to Zambia, macro-economic stability (and important aspects of social spending) are still very tightly tied to movements in the global commodity markets.

Furthermore, many of these countries have recently re-entered the global debt markets partly backed by primary commodities as surety. The same applies to debts owed to Beijing. Last year alone foreign debt issues in the region exceeded $6.5b. As I argued in June of 2013, we might be entering another pre-1980s debt bubble.

Tanking crude prices have put Angola on the ropes. The country recently slashed $14b of previously planned spending. The Cedi and Kwacha took a nosedive (26% and 13%, respectively) last year because of sagging commodity prices (gold and copper) and government deficits (fueled by the expectation of future commodity bonanzas, especially in the case of Ghana whose debt to GDP ratio is now a staggering 65%). Even well-balanced Kenya (also a recent eurobond issuer) has had to go to the IMF for a precautionary loan against currency-related shocks in the near future. The current situation has prompted ODI to warn that:

The exchange-rate risk of sovereign bonds sold by sub-Saharan African governments between 2013 and 2014 threatens losses of $10.8 billion, equivalent to 1.1 percent of the region’s gross domestic product, the ODI said. While Eurobonds are typically issued and repaid in dollars, the depreciation of local currencies in 2014 makes it harder for governments to repay them.

All this brings to the fore SSA’s biggest challenge over the next two decades: How to carry out massive investments in infrastructure and human capital, while at the same time maintaining a sustainably balanced macro environment that is conducive to long-term saving.

goodluck jonathan poised to win nigeria’s election

The Daily Nation reports:

Nigerian President Goodluck Jonathan has taken a wide lead in elections in Africa’s most populous nation, results showed today, putting him on a possible course for a first-round victory.

Millions of voters turned out for Saturday’s election as Africa’s most populous country bid to put years of rigging and badly flawed ballots behind it and hold the cleanest polls for head of state in nearly two decades.

Observers gave the polls an initial thumbs up, but concerns were raised over regional divisions, a scenario many analysts had hoped to avoid in a country as fractious as Nigeria, roughly split between Christians and Muslims.

Results from 30 states showed Jonathan had won 20, while ex-military ruler Muhammadu Buhari had nine and the former head of the anti-graft agency, Nuhu Ribadu, had one state.

Mr. Jonathan’s cross-national victories are a good omen for Nigerian unity moving forward. Now the big question is how Mr. Jonathan and the PDP will govern. Top on the agenda will be Nigeria’s energy problems. Sub Saharan Africa’s largest oil producer also happens to be one of its biggest importers of refined oil products. No new refineries have been built in the country in ages. The country also suffers frequent power outages despite the fact that millions of cubic metres of gas get flared in its oil fields daily. About 23 billion cubic metres get flared annually in Nigeria (second only to Russia).

That is 23 billion cubic metres of gas that can be harnessed for power production or LPG.

nigeria holds first transparent election since 1993

The last time Nigeria had a transparent election was in 1993. Then, opposition leader Moshood Abiola won the election only to be denied the chance to lead Nigeria by strongman Ibrahim Babangida. Mr. Abiola died in jail in 1998. Nigerians had to wait until May of 1999 to see the end of kleptocratic military rule. Mr. Olesegun Obasanjo, a former military ruler, was Nigeria’s first elected president since the early 1980s. His party (Mr. Obasanjo’s) the People’s Democratic Party (PDP) has since then won two elections under questionable circumstances, to put it mildly.

The latest election appears to be different.

Initial results show that PDP is set for a thumping in the legislative and governorship races, although its presidential candidate (Goodluck Jonathan) is still the front-runner with 62% approval rating.

Credit goes to Attahiru Jega, a professor of Political Science and head of the Independent National Electoral Commission (INEC), for ensuring that the Nigerian elections have credibility both at home and abroad.

Watch this space for the results of the gubernatorial and presidential elections in the coming weeks.