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Subject

The incoming administration's economic promises.

Significance

Investor and popular confidence in the incoming Muhammadu Buhari administration are high. The new president's perceived incorruptibility is seen as the antidote to President Goodluck Jonathan's ineffectiveness. However, a lack of clarity over how the All Progressives Congress (APC) can fund its economic policies remains a source of uncertainty, compounded by low oil prices.

Impacts

Nigeria's debt levels are relatively low, although the government may be forced to dramatically increase borrowing.

However, the sharp devaluation of the currency will complicate the CBN's goal of maintaining single-digit inflation over the medium term.

Slowing non-oil sector growth reflects the depreciation of the oil-linked naira and curbed public investment.

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