News
The Economist, UK Newspaper Calls Jonathan “an Ineffectual Buffoon”
The Economist, an English-language weekly newspaper owned by the Economist Group, has described Nigeria’s former president Goodluck Jonathan “an ineffectual buffoon”.
In an article titled “Nigeria’s economy Crude tactics”, the newspaper said: Buhari’s government has cracked down on corruption, which had flourished under the previous president, Goodluck Jonathan, an ineffectual buffoon who let politicians and their cronies fill their pockets with impunity.”
Below is the full article:
“MORE than 30 years ago, a young general swept to power in the fifth of Nigeria’s military coups since independence in 1960. The country he inherited was a mess: bled dry by pilfering politicians within and hammered by falling oil prices without. Last year that general, Muhammadu Buhari, became president again—this time in a democratic vote. The problems he has inherited are almost identical. So are many of his responses.
In the eight months since Mr Buhari arrived at Aso Rock, the presidential digs, the homicidal jihadists of Boko Haram have been pushed back into the bush along Nigeria’s borders. The government has cracked down on corruption, which had flourished under the previous president, Goodluck Jonathan, an ineffectual buffoon who let politicians and their cronies fill their pockets with impunity. Lai Mohammed, a minister, reckons that just 55 people stole $6.8 billion from the public purse over seven recent years.
Mr Buhari, who—unusually among Nigeria’s political grandees—is said to have just $150,000 and a couple of hundred cattle to his name, abhors such excess. As military ruler he jailed, fired or forced into retirement thousands of bureaucrats whose fingers had been in the till.
This time, the Economic and Financial Crimes Commission (EFCC) has arrested dozens of bigwigs, including a former national security chief accused of diverting $2.2 billion.
The EFCC has a poor record of securing convictions; but a single treasury account has been introduced to try to stop civil servants siphoning off cash.
And agencies which may not be remitting their fair share to the state are having their books trawled by Kemi Adeosun, the finance minister.
Such measures are doubly important because the economy is swooning along with the oil price. The sticky stuff directly accounts for only 10% of GDP, but for 70% of government revenue and almost all of Nigeria’s foreign earnings.
Oil’s price has fallen by half, to $32 a barrel, in the months since the new government came to power, sending its revenues plummeting.
Income for the third quarter of 2015 was almost 30% lower than for the same period the year before, and foreign reserves have dwindled by $9 billion in 18 months.
Ordinarily there would be buffers to cushion against such shocks, but Mr Jonathan’s cronies have largely squandered them. Growth was about 3% in 2015, almost half the rate of the year before and barely enough to keep pace with the population. The stockmarket is down by half from its peak in 2014.
Domestic oil producers are feeling the pinch worst. Many borrowed heavily to buy oilfields when crude was worth more than $100 a barrel, and are now struggling to pay the interest on loans, says Kola Karim, the founder of Shoreline Group, a Nigerian conglomerate.
This, in turn, threatens to create a banking crisis. About 20% of Nigerian banks’ loans were made to oil and gas producers (along with another 4% to underperforming power companies).
Capital cushions are plumper than they were during an earlier banking crisis in 2009; but, even so, bad debts are mounting and banks that are exposed to oil producers may find themselves in trouble. “It wouldn’t surprise me if one or two went down,” says a senior banker in Nigeria.
The government’s response to the crisis has been three-pronged. First, it is trying to stimulate the economy with a mildly expansionary budget.
At the same time, it is trying to protect its dwindling hard-currency reserves by blocking imports. Third, it is trying to suppress inflation by keeping the currency, the naira, pegged at 197-199 to the dollar. Only the first of these policies seems likely to work.
The budget, which includes a plan to spend more on badly needed infrastructure, is a step in the right direction. Although government revenues are under pressure from the falling oil price, Mr Buhari hopes to offset that by plugging “leakages” (a polite term for theft) and taxing people and businesses more. That seems reasonable. At 7%, Nigeria’s tax-to-GDP ratio is pitifully low. Every percentage point increase could yield $5 billion of extra cash for the coffers, reckons Kayode Akindele of TIA Capital, an investment firm. Mr Buhari also plans to save some $5 billion-$7 billion a year by ending fuel subsidies—a crucial reform, if he sticks with it. Even so he will be left with a deficit of $15 billion (3% of GDP) that will have to be filled by domestic and foreign borrowing.
Yet his policies on the currency seem likely to stymie that. The central bank has frozen the naira at its current overvalued official rate for almost a year.
The various import bans (on everything from soap to ballpoint pens) are supposed to reduce demand for dollars, but have little effect.
Businesses that have to import essential supplies to keep their factories running complain that they have been forced into the black market, where the naira currently trades at 300 or more to the dollar.
Several local manufacturers have suspended operations. International investors, knowing that the value of their assets could tumble, have slammed on the brakes and some have pulled money out of the country just as their dollars are most needed (see chart).
Nigeria is fortunate in having low levels of public debt (less than 20% of GDP), but it is not helped by high interest rates, which mean that 35% of government revenue goes straight out of the door again to service its borrowings. It would not take much to push it into a debt crisis.
Frustratingly, this crunch is one that Nigeria has been through before—under the then youthful Mr Buhari. Then, as now, he refused to let the market set the value of the currency. Instead he shut out imports, causing the legal import trade to fall by almost 50% and killing much of Nigeria’s nascent industry in the process. Between 1980 and 1990, carmaking fell by almost 90%. Today, as in the 1980s, the president is making a bad situation worse.”
Nigerian Education Loan Fund (NELFUND) said it has commenced moves to ensure that its website was linked to the portals of institutions to enable ease of verification.
Mustapha Iyal, executive director, Operations of NELFUND, made this known during a sensitisation programme at the University of Ilorin for higher institutions in Kwara state recently.
Sharing more insight on the update, Iyal said: “We observed that one of the problems we are having is the problem of verification. So what NELFUND is trying to do is that we want to engage the institutions directly by linking the NELFUND activities on the institutional portals so by doing that when a student is trying to do registration in school, they can select whether they want to pay via NELFUND, cash or other means.
“So if the student opts to pay with NELFUND, they will fill in the application with their details which are already on the institutional portals so they don’t have to go to the NELFUND portal. That is the kind of portal we are looking at. We want to create a synergy.”
Speaking further on complaints raised by students of beneficiary institutions in Kwara state, the NELFUND official said the organisation has commenced work on issues raised.
He said: “On the issues raised by the students, we are working on ways to make the whole process seamless. We have already started working on the issues. We work 24 hours and we are always there for the student.”
Also speaking, Umar Farouk, a representative of the National Association of Nigerian Students on the NELFUND board, lauded the move by the administration of President Bola Tinubu to establish the student loan initiative.
According to Farouk, the move will further encourage indigent students to have access to higher education.
He stated: “One of the campaign promises of the President is the student loan and I am happy to say that the student loan fund is here to stay. Nigerians can now understand that children of nobodies can now access higher education easily. With access to student loan, everyone now has the ease to go to school.”
The implementation of the student loan scheme is President Bola Tinubu’s flagship project in the education sector.
Operators in the insurance sector have been advised to have a rethink on their traditional approaches to business and embrace change with agility and the wave of digital transformation in modern business. Doing so, he stated, will enable them remain relevant and competitive in the business world.
The Chairman, Nigeria Insurers Association (NIA), Mr Kunle Ahmed, gave the advice at the 2025 Insurance Chief Executives’ retreat organised by the insurers in Lagos.
Speaking on the relevance of the theme of the year’s retreat, “Digital Disruption and Social Innovation: Reshaping Our Traditional Models,” Ahmed said, “As we discuss digital disruption, I urge you to consider the following questions: how can we leverage technology to better understand and serve our customers, how can we harness the power of data to drive decision-making and innovation, most importantly, how can we create a seamless and integrated digital experience that not only meets but exceeds customer expectations?”
He said equally important was the role of social innovation in reshaping the insurance industry, adding that as insurers, operators have responsibility to address the evolving needs of their diverse communities and ensure that their services were inclusive, accessible, and beneficial to all.
“Social innovation challenges us to think beyond profit margins and focus on creating positive social impact. Inclusive insurance, for instance, aims to provide financial protection to underserved and vulnerable populations. By developing products that cater to the unique needs of these communities, we can foster financial inclusion and resilience. Similarly, sustainable insurance practices can help mitigate the impacts of climate change and promote environmental stewardship,” he said.
He urged the insurers that as they explore the concept of social innovation, they should reflect on how to design insurance products that were not only profitable but also socially impactful.
He further said they should think about how to engage with stakeholders to drive collective action towards sustainability as well as how to measure and communicate the social and environmental benefits of their initiatives.
Ahmed told the insurers that the journey of digital disruption and social innovation was not one that they could embark on alone, adding that it required collaboration, partnership, and a shared vision for the future.
He said as industry leaders, they must work together to foster a culture of innovation, openness, and continuous learning.
In a major stride toward fostering innovation and collaboration, the UK and Nigeria have officially launched the Creative Industries Technical Working Group, marking a pivotal development in the UK-Nigeria Enhanced Trade and Investment Partnership (ETIP). This partnership aims to deepen bilateral ties and create a robust framework for growth within the creative sectors of both nations.
L-R: UK Head of Trade Policy for Nigeria (DBT), Mujina Kaindama; Country Director, UK’s Department for Business and Trade (DBT), Mark Smithson; UK’s Trade Envoy to Nigeria, Florence Eshalomi MP; Special Assistant to the President of Nigeria on Creativity, (representing Director General of the National Council for Arts and Culture, Obi Asika) Prince Baba Agba; and the Special Assistant to the President of Nigeria on Digital and Creative Economy, Fegho Umunubo at the launch of the Creatives Working Group, yesterday in London.
The launch of this Working Group and a match-making event for UK-Nigeria creatives industries leaders today in London, represents a milestone in the UK-Nigeria relationship, designed to boost innovation, cross-border creative collaborations, and drive sustainable economic growth and development.
Both events provided a dynamic platform to explore new opportunities and form commercial alliances within key creative subsectors such as Film and TV, Music, Fashion & Design,mArchitecture, Advertising, and Gaming.
By prioritising collaboration and cultural exchange, the initiative is poised to foster long-term growth, enhance job creation, and unlock new pathways for creativity and innovation in both countries. A Terms of Reference and joint workplan for 2025 were also agreed upon to guide the Group’s focus and efforts.
Speaking on the significance of the launch, Florence Eshalomi MP, the UK’s Trade Envoy to Nigeria and Co-Chair of the UK-NG Creatives Technical Working Group, remarked:
“Today marks a significant moment as we launch the UK-Nigeria Creatives Working Group. Our nations share a rich cultural bond and a deep belief in the transformative power of creativity, through music, film, fashion, and arts.
“This initiative, rooted in our landmark Enhanced Trade & Investment Partnerships (ETIP), will drive stronger trade ties, foster deeper collaboration, and unlock the full potential of our creative industries.
“By enhancing market access and investing in skills, we are opening doors to new opportunities that will create jobs and boost economic growth in the UK and in Nigeria.”
Emphasising the need for deeper creative and cultural ties, Mr. Obi Asika, Director General of the National Council for Arts and Culture and Co-Chair of the UK-NG Creatives Technical Working Group in Nigeria, said:
“Nigeria’s creative economy is a global force, driven by our storytellers, musicians, designers, and digital innovators. From Nollywood to Afrobeats, fashion to gaming, our industries are reshaping global culture and commerce. However, to unlock the full potential of this sector, we need strategic investment and support not just in talent, but in the institutions and infrastructure that will sustain long-term growth.”
Representing Mr., Obi Asika from the Nigerian side, Prince Baba Agba, Special Assistant to the President of Nigeria on Creativity, underscored the importance of leveraging UK expertise for impactful collaborations:
“The UK’s creative industries stand as a global benchmark for institutional excellence, market distribution, and innovation. We are eager to tap into your expertise for meaningful partnerships. This Working Group isn’t just about discussions – it’s about taking concrete actions that will yield tangible outcomes for creators, businesses, and industry stakeholders on both sides.”
Also speaking on behalf of the music industry, Adedayo Ayoade, Product Lead at Gbedu Labs, said:
“The future of Nigeria’s music industry lies in live experiences, innovation, and global collaborations. The launch of the Creative Industries Technical Working Group, under the ETIP framework, represents a significant first step towards bridging cultures and amplifying the voices of the next generation.”
The launch of the Working Group and match-making event which took the form of a series of in person dialogues attended by officials from the UK and Nigerian
governments as well as creatives and served as an institutional framework for deliberations and actions.
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