International credit rating agency, Standard
& Poors, has affirmed Nigeria Sovereign rating
at BB- with stable outlook. The affirmation is
coming when the agency is downgrading other
sovereigns like the United States, due to the
current global economic difficulties.
The outcome of the rating assessment was
disclosed by Ngozi Okonjo- Iweala, Minister of
Finance and Coordinating Minister of the
Economy, at a press briefing, at the ongoing
IMF/World Bank Annual meetings in
Washington DC.
The rating agency, while acknowledging the
challenges facing Nigeria, said the economy
remains robust with macroeconomic indicators
remaining strong.
The finance minister attributed the favourable
rating to the current fiscal stance of the
Federal Government, adding that this is one
more external validation of the economy.
On the Fiscal side, S$P says Nigeria’s GDP
growth remains strong in 2013 through 2016,
buoyed by non- oil sector growth.
According to the rating agency, Nigeria’s debt
stock remains relatively low, while foreign
reserves remain strong.
The agency also views the economy positively
in the light of the redeemed N1.7 trillion Non-
Performing Loans purchased by the Asset
Management Company of Nigeria (AMCON)
which will be finally written off its books.
S$P equally views non-oil Sector development
especially growth in agriculture, retail,
telecoms and power as positive.
Also at the briefing, the Central Bank of
Nigeria (CBN) governor, Sanusi Lamido Sanusi,
said the S$P’s assessment of the Nigerian
economy aligns with the difficult global
economic environment which has seen
countries like the United States being
downgraded.
The governor further stated that in today’s
global economy, there is limited pool of
investable capital and huge competition among
countries to attract such funds, and that going
by this rating, Nigeria would be favorably
disposed for such investment decisions.
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