Moody’s Investors Service, a global credit rating agency, said Nigeria is not growing fast enough to meet up with its increasing population.
While speaking at the agency’s Nigeria Annual Summit on Wednesday, Aurelien Mali, a Senior Vice President at Moody’s, noted that the Nigerian Government’s revenue weakness is destroying all efforts to create a much stronger economy. He added that the country’s balance sheet had “deteriorated to a level that is worrisome.”
According to him, the rating agency said that even though the country’s real Gross Domestic Product (GDP) rose from 0.8 percent in 2017 to 1.9 percent in 2018, the change is still not significant enough to develop the standard of living for Nigerians.
Mali also expressed concern that the current policy mix could result in yet subdued real growth, with limited room to maneuver.
In the meantime, Nigeria’s issuer rating as stated in the agency’s most recent credit update is at B2, with a stable outlook.
About the Summit: It is part of the Emerging Markets Programme that brings together over 2500 credit analysts and key market participants to discuss the main credit drivers, geopolitical risks, and the latest and most impactful regional trends.
The guest speakers were Eme Essien Lore, the Country Manager of the Nigerian International Finance Corporation, Adebanji Adeniyi, the Chief Financial Officer of Guaranty Trust Bank, Oluseyi Kumapayi, Chief Financial Officer of Access Bank Plc, and Austin Avuru, Chief Executive Officer and Executive Director of Seplat Petroleum.
Moody’s speakers were Sylvia Chahonyo, General Manager, Aurelien Mali, Vice President – Senior Credit Officer, Sovereign Risk Group, Sean Marion, Managing Director, Financial Institutions Group, Akintunde Majekodunmi, Vice President – Senior Credit Officer, Financial Institutions Group, Douglas Rowlings, Vice President – Senior Analyst, Corporate Finance Group, and Peter Mushangwe, Analyst, Financial Institutions Group.