Shares fall to three month low on Nigerian stock market following Buhari's declaration

PRESIDENT Muhammadu Buhari's recent declaration that he will seek re-election next year has had a negative effect on the Nigerian economy at least in the short term after stocks dropped to a three year low following the announcement.

Yesterday, president Buhari revealed that he would be seeking re-election next year when Nigeria goes to the polls and the announcement had an immediate negative impact on the stock market. Nigeria's stock market, which opened on a losing streak after Lafarge Africa announced a surprise 2017 loss, worsened its decline after the president's announcement.

At the end of trading yesterday, the equity market fell by nearly 40,000 points.       President Buhari's declaration drew mixed reactions from Nigerians, as some expressed gladness, while others criticised the president for making such a decision despite challenges facing the country.

In 2015, President Buhari defeated incumbent Goodluck Jonathan to become president, after previously failing to win in three consecutive polls. However, since assuming office, President Buhari has failed to tackle insecurity, the economy has shrunk from a high of an annual 6% growth rate and unemployment remains high.

To compound matters, President Buhari has been unwell for most of his tenure, having to spend lengthy spells in the UK recuperating. Just this week, President Buhari arrived in London for the Commonwealth Summit and it has been revealed that he will stay on after the meeting for medical treatment.