Nigeria’s election does not end economic woes

Nigeria’s 29th March election was a political triumph; the largely peaceful vote resulted in the country’s first-ever democratic transfer of power between presidents from different political parties. The clear result – MuhammaduBuhari won 54% of votes, to Goodluck Jonathan’s 45% – and Mr. Jonathan’s decision to immediately concede were welcomed by investors. The domestic stock market gained 8% on the day that results were announced. Over the longer term, however, the new president faces the daunting challenge of reforming an economy that suffers from endemic corruption and is overly dependent on dwindling oil revenues. Mr.Buhari’s economic plans remain unclear, but his party’s overwhelming victory in legislative and state elections will give him a strong mandate to push for reforms. The direction of policy will be clearer when the president-elect, who will be sworn in on May 29th, appoints his cabinet.