Economy as epicenter of elections brouhaha in 2019

Barely 24 hours to the kick off of 2019 general elections, which were botched at the last minute, the National Bureau of Statistics said the country yearly inflation dropped to 11.37 per cent in January, down from the seven-month high it reached in December, at 11.44 per cent.
 
The Central Bank of Nigeria (CBN) has had a running battle taming inflation numbers in nearly two years, with a mix of interest rate hike and foreign exchange management. By analysts’ estimates, the efforts have been largely successful. 
 
However, the ongoing electioneering may have something contrary for the assessed monetary policy successes by reason of the alleged monetisation of voters’ interests, long standing investors’ confidence crisis and ensuing economic management issues.Basic economics holds that increases in the money supply, arising from autonomous sources, government spending and foreign demand and growth, are naturally inflationary, ultimately pulling prices higher.

“There is mounting political risk ahead of the elections and domestic investors seen bargain hunt. While the Naira continues to witness stability against the dollar, volatility could be in the cards depending on the election outcome,” he noted.A fiscal governance campaigner, Eze Onyekpere, said the first likely effect of untamed election spending is that public money meant for developmental projects will likely be frittered away.

“This can happen at the federal, state and local levels and this will contribute to poverty and enhancement of the misery index. “Those who spent recklessly from their private resources will most likely want to recoup same if they get access to state resources after the election, because no one is ‘Father Christmas’, even the ‘Father Christmas’ charges some money as entrance fee. Thus, corruption will be on the ascendancy.

“If vote buying becomes widespread and affects the outcome of elections, then the election cannot be said to be free, fair and credible. This will foist an illegitimate government on the people and such government cannot effectively mobilise all the resources required for development, as its lack of legitimacy will haunt it throughout its tenure,” he noted.
 
Also, Abuja-based development consultant, Jide Ojo, said research has shown that reckless election spending and vote buying retards national development as it promotes political corruption. Politicians who engage in vote trading are not philanthropists. They see politics as business investment that can yield them super profit. The economy itself, is involved.
 
“After swearing in, the major preoccupation of these reckless politicians will not be to fulfill an articulated campaign promises, but to line their pockets with state funds.”“It is also important to flag the fact that vote trading is a criminal offense, under our laws, whether enforced or not. Section 124 and 130 actually criminalised voter inducement or bribery,” he said.