When President Buhari was announced winner of the 2015 Presidential Elections on March 31, 2015, the All Share Index recorded what is now known as a “Bull-Hari” effect. It recorded about 10 straight day of gains as investors basked in the excitement of a peaceful election and surprising acceptance of defeat by President Goodluck Jonathan. On the day the result was announced the marked gained a whopping 8.3% and followed that with another 3.9% gain.

Turn for the worse

Since then the stock market has recorded months of volatility as investors continue to be kept in the dark about the economic policies of the government. Investors both local and international have basically given up on the economy fleeing Nigerian stocks. The fall in oil prices, continued dithering by the CBN on its forex policies, corruption allegations against past governments, bankrupt states, drop in GDP and rising unemployment have all contributed to the negative outlook placed on the Nigerian economy thus damaging investor sentiments further.

Resultant effect

This has now resulted in a massive loss of value for the exchange. As at August 26th Nigerian Stocks have lost a massive N2.46 trillion in value since President Buhari was announced winner. From a market capitalisation of N12.13 trillion on the second of April 2015, it closed at N9.67 trillion Wednesday August 26th 2015.

Sure, the president only assumed power May 29, 2015 but we believe the GEJ Government basically turned lame duck since then. Even at that the stock market has lost N1.89 trillion since May 29. It has not climbed above N11.6 trillion since May 28, 2015.

No end in sight?

No one knows how soon things will reverse or how worse this could get in the coming months. For now the market is in dire need of an economic direction from the government. Despite the macro economic downturn being experienced around the world, a firm course of action from this Government will at least provide a soft landing for the market to bottom out.

eneanya2:
There are at least two important things to consider when examining the developmental trajectory of states when it comes to corruption. The first is that there are different types of corruption. The second is that the international community—at least through its media—looks on some types of corruption less favourably than others. But, this is sometimes misplaced.

When it comes to countries like Nigeria, the media assumes that corruption is the only reason for the country’s failure to break past itslower middle income status. The assumption appears to be that if the billions stolen by corrupt leaders were recovered and invested properly in public services, Nigeria would prosper.
There are several problems with this notion. Economic development is not an event occurring at a single point in time. It is an ongoing and dynamic process. If corruption does in fact affect systemic economic performance, we need nuanced analysis to figure out how that happens.
The Cost of Corruption

If corruption affects a country’s economy, one possible avenue is through transaction costs. We understand from the work of the American economic historian Douglass North that legal and regulatory stability, or a lack of it, affects a country’s economic performance. It affects the ability of business to efficiently and effectively calculate the cost of transactions.

North argued that the development of rule of law institutions, for example, is what enabled economic development in the UK. Business innovators could work in an environment where the cost of business can be reliably calculated and legally maintained. But this has not meant that countries such as the UK are free of corruption. They are merely corrupt in a way that does not overtly hamper economic productivity.

READ FULL AT: http://nairametrics.com/the-type-of-corruption-that-really-hampers-nigerias-economy/

Ozin:
Change chanters come see this backward change ooo.
Buhari: I will hit the ground running immediately

Ozin: Now he has truly hit the ground but decided to sit there

doyinisaac:
and all this started when buhari came In??please if you want to criticize criticize with honesty
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