Fitch affirms Nigeria’s credit rating stable, raises concerns over $10bn forex loan

Fitch Ratings has affirmed Nigeria’s long-term foreign-currency issuer default outlook at ‘B-‘ with a stable outlook.

It said at the weekend that the country’s major strengths are a large economy, a developed and liquid domestic debt market, and large oil and gas reserves.

This affirmation came as the Governor of the Central Bank of Nigeria Olayemi Cardoso, while playing host to former CBN governor, Muhammadu Sanusi II, reiterated his commitment to change the story of the apex bank and make its policies more impactful on Nigerians.

The rating agency, however, noted that the rating was constrained by weak governance, structurally very low non-oil revenue, high hydrocarbon dependence, security challenges, high inflation, low net foreign exchange reserves, and ongoing weakness in the exchange-rate framework.

It observed that Tinubu’s cabinet is supportive of reform which had contributed to the reform of the exchange rate framework much more quickly…

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Fitch affirms Nigeria’s credit rating stable, raises concerns over $10bn forex loan

 

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