Savita Iyer-Ahrestani of Global Investing Insights recently spoke with Peter Thoms, founder and portfolio manager of Africa Capital Group LLC, about the implications of the recent elections in Nigeria and the prospects and challenges that country faces going forward.
General Muhammadu Buhari, who won Nigeria’s closely watched and very tight presidential election last week, first came to power in a military coup in the 1990s, and was instrumental in introducing what Nigerians call “The War Against Indiscipline,” which required Nigerians to line up in an orderly fashion at bus stops and the like. In a nation where indiscipline of all sorts runs high, that kind of approach was and will be greatly appreciated, said Nigerian novelist and political commentator Okey Ndibe, and although Buhari also imposed strict controls on the press, he is remembered as someone who lived modestly and did not line his own pockets with public funds.
In a country, which is one of the biggest oil producers, but where corruption has always been endemic, that kind of reputation goes a long way, and it certainly puts Muhammadu several notches above ousted president Goodluck Jonathan.
But for Ndibe, Muhammadu will have much more to do than simply targeting and bringing to task corrupt government officials. If real change is to happen in Nigeria, then “we need strong institutions,” he said. “We need an independent judiciary, we need independent police and security services that would be impartial and not partisan. Nigeria’s problems are systemic and structural and in my view, if the entire country is to be restructured, it’s going to take more than a single leader to do that, it has to be a Nigerian Project, an alignment of different interest groups to realize that change is in our own self-interest.”
Nigeria is a $500 billion economy and with a population of close to 180 million, it is a huge market with great potential, and one that foreign investors like Peter Thoms, founder and lead portfolio manager at Africa Capital Group, have a keen interest in.
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