EX PRESIDENT GOOD LUCK JONATHAN'S VICTORY

Jonathan’s victory: 

Sun News Publishing More Stories on This Section Economic experts have predicted economic stability for Nigeria after the Peoples Democratic Party’s ( PDP) presidential primaries which saw incumbent, President Goodluck Jonathan emerge as winner. Economic experts are of the view that pressure on foreign reserves will reduce going forward, allowing for resumption of reserve accumulation and influencing political and economic sentiments positively. Regional head of research Africa, Standard Chartered Bank London, Ms Razia Khan in her analysis of the state of the economy after the PDP primaries, stated that part of the reason for the continued depletion of the Excess Crude Account (ECA) with its consequence of falling external reserves , even after relative stabilisation in both oil prices and output; was due to substantial rise in government spending which observers argue was a background lobbying that was needed to secure victory. Available data shows that over $20 billion was left in the ECA at the end of the previous administration but as at date, this has been completely depleted leaving less than $300 million in the account. “But now that the PDP primary election is over, relative stability is expected,” Khan submitted.She further maintained that Jonathan’s victory is another antidote needed for the restive Niger Delta. According to the economist, there will be calm in the oil rich region, positively impacting Nigeria’s oil output. Earlier, a member of the Monetary Policy Committee of the Central Bank of Nigeria Dr. Doyin Salami in predicting the state of the economy after PDP primaries, hinted that the country’s economic fundamentals will continue the way it is untill the April 2011general election was over. While the administration had stated that the reduction in reserves was attributable to the increased demand for foreign exchange in line with increased economic activity by the public and private sectors, including the outlays on the power sector by the three tiers of government, and the seed money for the Sovereign Wealth Fund (SWF), other economic fundamentals according to observers are a mixture of positives and negatives. For instance, while fuel distribution and pricing have stabilized, power generation remains below the 6000-mega watts target of the government in 2010. The planned borrowing from external and domestic sources by the Federal Government during the 2011 Fiscal year, is listed as a source of funding the 2011 deficit to the tune of N865.24billion in the Revenue and Expenditure Framework; a development some analysts said was an indicator that the public sector will continue its crowding out effect on access to credit by the private sector and banks will continue to be risk averse.

The purpose of this publication is to refresh us of our previous president in Nigeria

Copy 2011