Delay to Nigeria’s election puts naira under pressure

The delay to Nigeria’s election and the controversy over the alleged misappropriation of oil revenues have cast the spotlight on the country’s weak governance. After the decision to delay the election was announced on 7th February, the naira came under further pressure, falling to an all-time low of 206 per US dollar, before recovering slightly. Looking ahead, the election has scope to create renewed uncertainty and volatility. The official reason for the delay was that military forces could not guarantee security during an election, due to their occupation with combating BokoHaram. Given that the security situation seems unlikely to improve substantially in the next few weeks, it is possible that the election will be delayed again. Even if it does go ahead, there is probably now an even greater risk that it sparks violence similar to that during the last election.