Buhari’s policies led to economic bottleneck, stifled private sector growth —Morgan Stanley

Global investment bank Morgan Stanley has disclosed that the interventionist policies of former President Muhammadu Buhari triggered economic bottlenecks and hindered the private sector’s ability to grow.

Some of the interventionist policies according to Steven Quattry, an analyst at Morgan Stanley included multiple foreign exchange windows and fuel subsidies regime.

Quattry, in the report titled ‘Market Outlook: Nigeria’s New Dawn’ which was published on the bank’s website on Wednesday, disclosed that the last eight years have been difficult for Nigerians.

“Yet for the average Nigerian, the last eight years were incredibly difficult. The interventionist policies of former president Muhammadu Buhari namely, multiple foreign exchange rates and fuel subsidies—led to economic bottlenecks and hindered the private sector’s ability to grow.

“The country was one of the fastest-growing economies in the world from 2001 to 2014, but during Buhari’s term grew only 1.4% on average a poor showing, considering the 2.8% growth in the working-age population. 

READ ALSO:Nigeria already bankrupt under Buhari before Tinubu took over – Ribadu

“Over that same period, the average Nigerian saw their annual income shrink by nearly a third, from $3,222 U.S. dollars to $2,200. By contrast, Kenyans saw their incomes rise by more than 40%.”

The report sees an opportunity for growth in the country’s economy in the next few years once the policies of President Bola Ahmed Tinubu begin to bear fruit.

“In the next two to three years, once the current administration has succeeded in reversing the harmful policies and economic malaise of the past eight years, Nigeria could witness a sharp upturn in economic growth.

This is likely to present investors with opportunities in local equity markets, especially in the telecom, consumer goods and durables sectors”.

By Babajide Okeowo

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