Ratings Agency, Standard & Poors has affirmed the Federal Government of Nigeria ratings at ‘B/B’; outlook stable.
The rating agency also said Nigeria’s economic outlook was stable on the back of oil sector growth. The Nigerian Government depends largely on oil for its revenue, thus a positive outlook suggest the recent economic growth currently being experienced in the country may continue to improve.
Here are highlights of the ratings as reported by Reuters
- S&P says Nigeria’s stable outlook signals assessment that oil sector improvements will support higher economic growth, fiscal revenues, among other things
- S&P says Nigeria’s stable outlook signals assessment that oil sector improvements will also support higher current account receipts over next 12 months
- improvements experienced in 2017 with higher oil production will help increase foreign currency supply,keep current account in balance
- S&P says ratings on Nigeria constrained by view of low level of economic wealth, weak external position, among other things
- S&P says ratings on Nigeria also constrained by view of real GDP per capita trend growth rates below those of peers with similar levels of development, and future policy responses that may be difficult to predict
- S&P on Nigeria- still see sporadic attacks in north east owing to Boko Haram,as well as risk of another escalation of tensions in the Niger delta