Muhammadu Buhari’s Essay on the CHANGES Nigeria Need

Nigeria is at a crossroads. Just over a year ago,

people voted in a historic democratic election to end

corruption and business as usual, opting instead to

build an economy that delivers for all Nigerians.

The old order was based on an unsustainable

commodities supercycle. While the boom had many

positives and contributed to Nigeria becoming

Africa’s largest economy, it fostered an epidemic of

corruption and inefficiency. Foreign businesses and

financial institutions also benefited as some people

spent and sometimes hid huge sums abroad, lifted

by the rising tide of oil exports and dollar revenues.

Now we are living in a new world of low energy

prices. The economy has slowed while

unemployment and inflation have jumped.

Longstanding structural imbalances and

overdependence on imports have been cruelly

exposed. We are an oil-rich nation that imports most

of our gasoline. We are a farming nation that imports

most of our basic food staples. This is simply not

acceptable or sustainable.

Our solutions must be in proportion to the

challenges. Fundamental change takes time and we

are driving not one but three changes to reposition

Nigeria for inclusive growth.

Restore Trust

We have begun to tackle the endemic corruption and

mismanagement that is crippling our economy and

corroding trust in our institutions. The anticorruption

fight is at the heart of combating poverty and

improving security. We have stepped up enforcement

and new prosecutions to get our house in order, and

I have called for foreign governments to work with us

to identify where funds stolen during previous

administrations are lodged and for multistate

cooperation to combat oil theft.

Fighting corruption is not enough. We need

accountable government and a public sector that can

do more with less. We have already taken initial steps

by bringing all government finances into a single

treasury account where we can monitor spending

and impose discipline, implementing zero-based

budgets and benchmarks targeted at waste and

fraud, and establishing electronic platforms for

government agency interface.

Rebalance Our Economy

In a world of lower oil prices and dollar revenues, the

only sustainable path is to reduce Nigerians’

overreliance on imports. We must rebalance our

economy by empowering entrepreneurs and

producers, big and small, to create more of what

their fellow Nigerians demand. The supply of foreign

exchange to the economy must be increased. This

requires radically increasing exports and productivity

and improving the investment climate and ease of

doing business.

Nigeria’s growth and job creation will be led by the

private sector. We are a young, entrepreneurial

society with vibrant success stories in new industries

such as telecommunications, technology and

entertainment. Government is doing its part to lower

taxes on small businesses, eliminate bureaucracy to

bring the informal economy out of the shadows and

provide development funding for priority sectors

such as agriculture. The central bank has moved to

introduce greater flexibility in our exchange-rate

policy. These actions are a downpayment on our

people’s ability to succeed.

Regenerate Growth

We must reposition our economy by attracting

investment in domestic industries and infrastructure.

Nigeria has huge untapped gas reserves and also a

critical shortage of electricity. Our private sector

loses too much of its revenue due to brownouts and

power outages. Half of my fellow Nigerians have no

access to the power grid. Investment in our power

infrastructure, restructuring of the state-run oil-and-

gas sector and development of other industries such

as solid minerals, metals and petrochemicals will

help to create a virtuous circle of growth and exports

while creating jobs and reducing poverty.

I am optimistic that our actions are providing the

breathing room Nigeria needs during this period of

fundamental change. But we cannot improve living

conditions and restore fiscal health without making

people feel safe and secure—just as we cannot

defeat militancy without reducing poverty and

dislocation.

One of our main achievements this past year has

been to unite regional and global allies to push back

Boko Haram. What we do in the next three years to

build an economic bridge to Nigeria’s future will be

just as important for bringing lasting peace and

prosperity.