Global rating agency Moody’s released its latest Investing Rating report on Nigeria assigning a ‘Ba3 stable’ rating on the country. It claims Nigeria’s benefits from resilient economy and robust fiscal position largely due to its low public debt as a percentage of GDP. The article goes on to mention in a rather subtle form the likely negative impact the fall in oil prices may have on Nigeria in the near future. It also sights the insecurity and insurgency in the North as another risk that may continue to impede progress. Moody’s despite all the risk of large deficits and insecurity still expects investments to come into Nigeria in the coming years. The report which was released yesterday will be very well accepted by the current GEJ Government and loathed by the opposing APC led Buhari.
Just check out this quote.
“Over the last ten years, Nigeria has grown in real terms by 8.3% annually, emerging in 2014 as the largest economy in Africa and displaying improving macroeconomic indicators, such as inflation and investment. Combined with an increasingly diversified economy — led by the services sector — we expect that the economy will continue to expand, and forecast that real GDP growth will reach 5.0% in 2015,” says Aurelien Mali, Moody’s senior analytical advisor — Africa and author of the report.
Barring any tail risk, Moody’s projects that investments will increase over the coming years and will benefit overall economic growth. As the country further develops its infrastructure, multinationals will likely increasingly compete for megaprojects: For example, China Railway Construction Corporation has recently won the nearly $12 billion contract to build and equip the 1,400 km costal railway which will link Lagos to Calabar in the east of the country via the city of Benin.
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