Nigeria’s President Buhari dissolves cabinet in preparation for second term in office
Nigerian President Muhammadu Buhari is expected to dissolve his cabinet today ahead of the inauguration of a new government on Wednesday.
In his first term, it took Mr Buhari some six months to fill his cabinet. This time around, the president is expected to submit his cabinet for Senate approval when it next convenes on June 9. His second-term cabinet is expected to strongly resemble that of his first mandate.
Indeed, earlier this month, Mr Buhari nominated Godwin Emefiele for a second term as governor of the Central Bank of Nigeria. This means Nigeria’s monetary policy of the last four years—high interest rates to contain inflation—will likely remain consistent.
While consistency is generally looked at favourably by investors, Nigeria’s economy remains beset by sluggish growth—it is projected to expand by just 2.5% this year. But with inflation stubbornly remaining around 9% despite an interest rate of 13.5%, a fresh approach that prioritised growth by cutting rates would be welcomed by investors.
Instead, little is expected in the way of policy change, particularly with a 67% hike to the minimum wage expected that will further pressure prices upward. As such, expect Nigeria’s economic struggles to continue in the medium-term.
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