Gains from Nigeria’s policy shift at risk of evaporating

Nigeria’s policy shift has stalled in recent weeks as officials have responded to a growing political backlash by reverting to the interventionist tendencies of the Buhari administration. The result is that the naira has plunged on the parallel market and costly fuel subsidies have returned. All hope is not lost. But officials will need to move quickly to reassure investors that the orthodox shift remains on track. As a first step, new CBN Governor Olayemi Cardoso could do no better than delivering a large interest rate hike.