Insightful analysis - definitely worth a read ...

Economist

26 May 2011

Nigeria's prospects

A man and a morass

Can the new government of Goodluck Jonathan clean up corruption and set enterprise free in Africa’s most populous country?

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With Mr Jonathan’s inauguration on May 29th, and the formation of a new government, many expect a turnaround. Two-thirds of Nigerians think the election will change their lives, according to a poll conducted by the International Republican Institute, an American lobbying group. “We dream,” says a girl shining shoes. “What else can we do?”

The buoyant mood extends to the boardrooms and watering holes of Lagos, the business capital. There, sleekly suited bankers are licking their fingers. “We are printing extra business cards,” says one. Foreign investors, too, see a chance of good times ahead on the back of reforms promised by Mr Jonathan. They speak of billions held in offshore accounts, ready to be injected into the economy if the political stars align. A senior Western diplomat calls this “a real opportunity for Nigeria to kick itself into a new sphere”.

Though widely shared, that sentiment has not silenced the general dissatisfaction. If anything, it has grown louder as reform plans take shape and the rascal ways of the political class are unmistakably identified as the main reason for the lack of prosperity. The economy may be growing by 7% a year, but this feeds mostly the greedy mouths closest to government troughs. The speaker of the lower house of parliament was investigated this month for “misappropriating” $140m. Meanwhile, about 70% of Nigerians live on less than $2 a day...