Standard & Poor’s Warns That Nigeria’s Economy Is In A “Clear And Present Danger”

Photo Credit: naija2day.com

by Agency Reporter

International rating agency, Standard & Poor’s, yesterday, warned that Nigeria’s economy is in a “clear and present danger,” even as data released by the National Bureau of Statistics, NBS, revealed that Nigeria earned N12.8 trillion from crude oil export in 2014.

The rating agency, in a presentation by Konrad Reuss, Regional Manager, sub-Saharan Africa, put Nigeria on a negative sovereign ratings watch, BB minus.

According to Reuss, the factors putting the Nigerian economy in danger include the Boko Haram insurgency, the fall in oil prices, because of the importance of oil for government and export revenues, as well as the forthcoming elections.

Reuss explained that Standard & Poor’s rated Nigeria based on its six main categories and found out that Nigeria was weak in three classifications, namely: institutional and governance effectiveness, economic structure and growth, fiscal flexibility and performance.
In addition, Reuss who was addressing a seminar on Nigeria in Sandton, north of Johannesburg, said Nigeria was classified as neutral in external liquidity and international investment position and monetary flexibility, while its only area of strength was in its debt burden.

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