ADVERTISEMENT
  • The Membership Club
  • PT Hausa
  • About Us
  • Advert Rates
  • Careers
  • Contact Us
Saturday, February 27, 2021
Premium Times Nigeria
  • Home
  • COVID-19
  • News
    • Headline Stories
    • Top News
    • More News
    • Foreign
  • Investigations
  • Business
    • News Reports
    • Financial Inclusion
    • Analysis and Data
    • Business Specials
    • Opinion
    • Oil/Gas Reports
      • FAAC Reports
      • Revenue
  • Opinion
  • Health
    • News Reports
    • Investigations
    • Data and Infographics
    • Health Specials
    • Features
    • Events
    • Primary Health Tracker
  • Agriculture
    • News Report
    • Research & Innovation
    • Data & Infographics
    • Special Reports/Features
    • Investigations
    • Interviews
    • Markets
  • Arts/Life
    • Arts/Books
    • Kannywood
    • Lifestyle
    • Music
    • Nollywood
    • Travel
  • Sports
    • Football
    • More Sports News
    • Sports Features
  • Projects
    • Parliament Watch
    • Panama Papers
    • Paradise Papers
    • AGAHRIN
  • Home
  • COVID-19
  • News
    • Headline Stories
    • Top News
    • More News
    • Foreign
  • Investigations
  • Business
    • News Reports
    • Financial Inclusion
    • Analysis and Data
    • Business Specials
    • Opinion
    • Oil/Gas Reports
      • FAAC Reports
      • Revenue
  • Opinion
  • Health
    • News Reports
    • Investigations
    • Data and Infographics
    • Health Specials
    • Features
    • Events
    • Primary Health Tracker
  • Agriculture
    • News Report
    • Research & Innovation
    • Data & Infographics
    • Special Reports/Features
    • Investigations
    • Interviews
    • Markets
  • Arts/Life
    • Arts/Books
    • Kannywood
    • Lifestyle
    • Music
    • Nollywood
    • Travel
  • Sports
    • Football
    • More Sports News
    • Sports Features
  • Projects
    • Parliament Watch
    • Panama Papers
    • Paradise Papers
    • AGAHRIN
Premium Times Nigeria
BUA Group Ad BUA Group Ad BUA Group Ad
ADVERTISEMENT
Fitch Ratings agency. [PHOTO CREDIT: Thisday Live]

Fitch Ratings agency. [PHOTO CREDIT: Thisday Live]

Coronavirus: Ratings agency, Fitch, steps Nigeria down to ‘B’ negative

byBassey Udo
April 8, 2020
2 min read
ADVERTISEMENT

The current devastation by the deadly coronavirus pandemic on the global economy has worsened Nigeria’s economic situation, with Fitch Ratings agency downgrading the country’s long-term foreign exchange issuer default rating (IDR) to B- from B+.

The agency said in its latest report that the downgrade reflected the impact of the prevailing pressures on Nigeria’s external reserves amid the unprecedented decline in global crude oil prices in the wake of the continued devastation of the global economy by the COVID-19 pandemic.

The report said the shock from the pandemic intensified the external pressures and risks of disruptive macroeconomic adjustments in the face of Nigeria’s deplorable monetary and foreign exchange policy as well as the dearth of fiscal buffers.

On Monday, the federal government confirmed the pandemic has already unsettled its fiscal and economic plans for the year, leaving it to grapple with urgent revision of its budgetary projections.

“Because the 2020 Appropriation Act was based on certain fiscal assumptions, we have been compelled to revisit them given the emerging economic realities as a result of the impact of COVID-19,” the Minister of Finance, Budget and National Planning, Zainab Ahmed, said on Monday at the launch of the N500 billion stimulus package against the pandemic.

The minister said with projected oil revenues significantly affected, the Nigerian government was compelled to revise the benchmark oil price for 2020 from $57 per barrel to $30 and oil production to 1.7 million barrels per day.

Similarly, she said the government resolved to adjust downwards its non-oil revenue projections, including various tax and customs receipts as well as proceeds from the privatisation exercises.

The economic shock also compelled the Central Bank of Nigeria a fortnight ago to ‘devalue’ the country’s national currency by almost 18 per cent, from the previous rate of N306 to the dollar to N380 per dollar.

The extent of the adjustment may not be commensurate with the level of impact by the pandemic of the economy, with economic analysts saying Nigeria is facing a potential economic depression in the coming months.

RelatedNews

Nigeria: Our Finance System Needs To Be More Forward-Looking, By Yemi Osinbajo

Nigerian appointed provost of University of San Francisco

Nigeria needs urgent action on food as population surges — Osinbajo

Corruption In Africa and the Role of the Global North, By Uche Igwe

Fitch noted Nigeria’s ‘B’ rating also reflected the existence of large contingent liabilities on the government’s balance sheet, which is capable causing a steeper rise in the country’s debt profile currently put at over N32 trillion.

Even the state governments are not spared the pangs of the pandemic, with the federal government announcing a scheme granting them moratorium that would involve the rescheduling of their loans and debts repayment till after the crisis.

“The collapse in oil prices will pressure already overstretched state and local governments’ resources, possibly requiring financial assistance from the Federal Government,” the report said.

Dangote adbanner 728x90_2 (1)

  • WhatsApp
  • Tweet
  • Email
  • Print
  • Telegram
  • More
  • Share on Tumblr
  • Pocket

Support PREMIUM TIMES' journalism of integrity and credibility

Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.

For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.

By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.

Donate


TEXT AD: To advertise here . Call Willie +2347088095401...


JOIN THE CONVERSATION

  • Disqus (0)
premiumtimes



PT Mag Campaign AD

Previous Post

Seven patients recover from coronavirus in Abuja – Minister

Next Post

Coronavirus: IMF pledges ‘swift attention’ to Nigeria’s loan request

Bassey Udo

Bassey Udo

Bassey Udo is PREMIUM TIMES' Business & Economy Editor. He has covered finance, energy, oil, gas & extractive industries for over a decade. He is a winner of the Wole Soyinka Award for Investigative Journalism, and the Thomson Reuters Foundation (Wealth of Nations) Award for Business Reporting. Bassey is an alumnus of the U.S. International Visitors Leadership Programme. Twitter: @ba_udo

More News

COVID-19 vaccine vials [PHOTO CREDIT: BioWorld]

Which is best COVID-19 vaccine?

February 27, 2021
Naira notes used to illustrate market trading

Naira crosses three-month mark in parallel market fall

February 26, 2021
Vice President Yemi Osinbajo speaking at the ministerial retreat[PHOTO CREDIT: @ProfOsinbajo]

Osinbajo opposes cryptocurrency ban

February 26, 2021
Nigeria Anambra State map

Anambra introduces COVID-19 mobile testing

February 25, 2021
National primary health care development agency, NPHCDA.

COVID-19: NPHCDA to train 100,000 health workers ahead of vaccine arrival

February 25, 2021
Minister of Finance, Zainab Ahmed 1

Unifying Naira’s exchange rate will take time, Nigerian Govt tells World Bank

February 25, 2021
Next Post
International Monetary Fund (IMF)

Coronavirus: IMF pledges 'swift attention' to Nigeria's loan request

Malawi on map

Malawi records first coronavirus death

Discussion about this post

Search

#EndSARS: Latest Updates




Polaris Bank


JAIZ Ad


NITDA Ad





Glo Ad

Subscribe to News via Email

Enter your email address and receive notifications of news by email.

Join 1,625,748 other subscribers.

Advertisement






netherland biz school Advert

Zenith Advert
ADVERTISEMENT

Our Digital Network

  • PT Hausa
  • Election Centre
  • Human Trafficking Investigation
  • Centre for Investigative Journalism
  • National Conference
  • Press Attack Tracker
  • PT Academy
  • Dubawa
  • LeaksNG
  • Campus Reporter

Resources

  • Oil & Gas Facts
  • List of Universities in Nigeria
  • LIST: Federal Unity Colleges in Nigeria
  • NYSC Orientation Camps in Nigeria
  • Nigeria’s Federal/States’ Budgets since 2005
  • Malabu Scandal Thread
  • World Cup 2018
  • Panama Papers Game
  • Our Digital Network
  • About Us
  • Resources
  • Projects
  • Data & Infographics
  • DONATE

All content is Copyrighted © 2020 The Premium Times, Nigeria

No Result
View All Result
  • Home
  • COVID-19
  • News
    • Headline Stories
    • Top News
    • More News
    • Foreign
  • Investigations
  • Business
    • News Reports
    • Financial Inclusion
    • Analysis and Data
    • Business Specials
    • Opinion
    • Oil/Gas Reports
      • FAAC Reports
      • Revenue
  • Health
    • News Reports
    • Investigations
    • Data and Infographics
    • Health Specials
    • Features
    • Events
    • Primary Health Tracker
  • Agriculture
    • News Report
    • Research & Innovation
    • Data & Infographics
    • Special Reports/Features
    • Investigations
    • Interviews
    • Markets
  • Arts/Life
    • Arts/Books
    • Kannywood
    • Lifestyle
    • Music
    • Nollywood
    • Travel
  • Sports
    • Football
    • More Sports News
    • Sports Features
  • Projects
    • Panama Papers
    • Paradise Papers
    • Parliament Watch
    • AGAHRIN
  • Opinion
  • PT Hausa
  • The Membership Club
  • Dubawa
    • Dubawa NG
  • About Us
  • Advert Rates
  • Careers
  • Contact Us
  • Digital Store
  • DONATE

All content is Copyrighted © 2020 The Premium Times, Nigeria

Our website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.