Fitch Ratings downgrades Nigeria’s credit rating
Nigeria’s Long-Term Foreign-Currency Issuer Default Rating (IDR) has been lowered from “B” to “B-” by Fitch Ratings.
Using Ecuador and Angola as benchmark examples, Nigeria is now rated six levels above default. In a release disseminated on Friday, Fitch announced that the nation has a stable forecast.
Despite elevated crude prices in 2022, the downgrade was attributed to the expenses linked to servicing government debt and deteriorating external liquidity, among other elements.
As stated in the Fitch report, “Diminished oil production and the costly subsidy on petrol have absorbed most of the fiscal advantage of high oil prices in 2022 and will persist in exerting pressure on already low government revenue levels.”
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