Buhari’s many headaches as he begins another 4-year term

President Muhammadu Buhari officially begins his second and final term on Wednesday following his re-election in February on pledges of reviving the economic.

Despite his large winning margin, the next four years won’t be easy for the 76-year-old former general as his first four years was besieged by many issues, including the rising spate of insecurity and a battered economy.

Nigeria’s economic growth has slumped since the 2014 crash in crude prices and Buhari is struggling to revive it. Inflation is at 11.4% and has been above the CBN’s target of 6% to 9% for almost four years.

A slump in foreign direct investment since the early part of the decade has accelerated under Buhari, whose administration has come into conflict with companies including MTN Group Ltd. and JPMorgan Chase & Co.

Last year, FDI flows into Nigeria totaled just $2.2 billion, less than a third of the amounts South Africa and Egypt attracted.

Since so few Nigerians and companies pay tax, the nation has one of the lowest revenue-to-GDP ratios in the world at about 7%. That leaves the government with little money to spend on schools, hospitals and infrastructure.

Officials are also concerned about how much of Nigeria’s budget is soaked up by interest payments. In March, the Debt Management Office disclosed it will avoid Eurobonds and instead prioritize concessional loans from the likes of the World Bank to lower its finance costs.

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Central Bank Governor Godwin Emefiele, who Buhari just re-appointed for a second term, ramped up capital controls in a bid to stop the currency depreciating. Many also say that CBN meddling has left the naira overvalued: Renaissance Capital estimates it should be about 20% weaker against the dollar.

Buhari is an advocate of low petrol prices, believing they’re one of the few benefits that Nigerians get from the state. They’re capped at 145 naira a liter ($0.40, or $1.51 a gallon), which makes Nigeria the sixth cheapest country in which to fill up your tank, according to GlobalPetrolPrices.com.

That cost almost $2 billion in subsidies last year, according to the IMF, which has urged the government to raise prices.

Insecurity is another headache of the administration. While Buhari managed to win back territory in the northeast held by Boko Haram when he first came to power, a breakaway faction allied to Islamic State is gaining strength and regularly attacks army bases and convoys.

That’s one of a string of security problems that have escalated in recent years. In other parts of the country, clashes between farmers and herders over grazing land led to around 2,000 deaths in 2018, according to Amnesty International.

Buhari’s popularity with voters is largely because of his promises to fight corruption. While he says his administration has done much to cut graft in the public sector, critics complain that he lacks a clear strategy and that he’s used his anti-corruption campaign to go after political opponents.

Meanwhile, as the President takes oath of office on Wednesday, the Socio-Economic Rights and Accountability Project (SERAP) has sent an open letter to him, urging him to “publicly commit to making every day of hif stay in Aso Rock a ‘Rule of Law’ Day.

The organization expressed: “serious concerns that the results of the ‘rule of law MOT’ in the past four years are uniquely damaging to your government’s fight against corruption and to the country.”

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