Standards  and Poor’s d​owngrades ​Nigeria’s economy

Standards and Poor’s (S&P) an International rating Agency on Friday said that ​the Nigerian government fiscal policies in response to fall in global oil price were “proactive and ambitious”.

This was disclosed in a statement Paul Nwabuikwu, spokesperson to the Minister of Finance, Ngozi Okonjo-Iweala, in Abuja.

 It said that the rating organisation in its latest rating of Nigeria’s economy downgraded it from BB- to B+.

The downgrading was attributed to the decline in oil price in the seven months which affected external position and external vulnerability of the country. 

It, however, identified the coming general elections and the potential under performance

​i​n oil production as possible negative factors.
“Nigeria is one of many oil producing countries downgraded by S&P due to the impact of the steep drop in global oil prices on their economies,” it said.

It further noted that it based its decision on significant political risk arising from the coming elections as well as the impact of insurgency in the North East. 

The Agency put annual real GDP growth of the country at five  per cent

​ of ​the fall in oil prices. 
“This is slightly higher than the 4.8 per cent projected by the IMF and is quite robust by current global standards,” it said. 

According to the statement, the GDP growth is being driven by the non-oil sectors of the economy.  

Other countries downgraded by the agency are  Russia, Bahrain, Congo (Brazzaville), Kazakhstan, Oman, Venezuela, Angola and Gabon. 

It also assigned a negative outlook to Azerbaijan and Saudi Arabia.

(NAN)

 


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  • evi

    Even with S and P detailed analysis of why it downgraded Nigeria and Nigeria not being the only country downgraded, apc brain dead members and blind followers will still look for how to blame Jonathan for the downgrade and use it to score cheap points.

  • Arewabetter

    This has long been expected. Standard and Poor’s will continue to downgrade the Nigerian Economy until the government in the centre gets rid of economically unproductive people like Fani-Kayode. His main area of productivity is depicted in the cartoon below.

    • Guguru

      LOL.

  • BENNETT_2

    Over the years, we have been operating an economy of borrow, borrow, spendtrifts always have their way. We make 10naira today, tomorrow we make 20naira loss.
    Still operating “MARKET WOMEN” ECONOMY.
    WE are in the same boat with other spendthrift countries. Spending above their income on luxury!!!!!

  • Spoken word

    And some dumb people will still be shouting four more years of such economic decline

  • Yusuf

    vote Jonah for the emptiness of our treasury

  • Biodun

    It is clear that the rating is a fallout of a global problem — falling oil prices and not as a result of any wrong move by the Nigerian government. Premium Times has a way of adopting a negative slant to every story to make the government look bad. Very unfortunate.

  • Ayodeji

    “The Agency put annual real GDP growth of the country at five per cent​ of ​the fall in oil prices. ‘This is slightly higher than the 4.8 per cent projected by the IMF and is quite robust by current global standards,’ it said.”

    Isn’t the above excerpt a more important fact considering the fact that many nations, and not just Nigeria, are being affected by the decline in oil prices? The news here is not that Nigeria’s economy was downgraded; the news is that economic growth is robust in spite of the global challenges.

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  • Salamatu Ibrahim

    This is obviously a global issue and not peculiar to Nigeria alone as clearly seen in the article. So what has the current administration got to do with it if most world economies are seemingly battling with the fall in oil price? Why tilt the discourse in such a manner as to make the Jonathan-led administration look incompetent?

    • Tanko Maihula

      But and as at may 2010 when GEJ assume the presidency of Nigeria how much do we have as reserve and how much is in the excess crude account? (2) Did Nigeria ever sale crude below the bench mark price within that period (2010-2014)? (3) what’s the level of our debt (both internal and external) before him and now?
      I hope you will give an objective answer to my three questions, then we will proceed to the main reasons why the present administration will be blame despite the fall in oil price globally.

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  • Shaanu Akowe

    Now, Some unrealistic Nigerians had expected an exemption from the harsh realities of the falling oil prices. Cynics cannot see, for instance, that no change in government or policy can affect these systemic down turn. to them it is about what Ngozi Okonjo-Iweala and GEJ did wrong. It’s a pity for the I-too-know economists who paint government black to the ignorant.