Credit rating agencies degrade Nigeria based on external factors.
In recent times, Nigeria’s rating was downgraded in reports revealed by international credit rating agencies like Moody’s and Fitch Ratings. The Nigerian government bemoaned the effect of these downgrades on the cost of funds in the international market, which is said to have been concluded considering external factors and not from reality. This was disclosed by the Minister of Finance, Budget and National Planning, Mrs. Ahmed Zainab, while she received Deputy Director General of the United Nations (UN), Mrs. Amina Mohammed, in Abuja.
Moody’s lowered Nigeria’s long-term issuer rating and foreign currency senior unsecured debt rating to B3 from B2 in both local and foreign currency. While Fitch downgraded the country’s Ratings long-term foreign currency Issuer Default Rating (IDR) from B to B-, putting it six grades above default and on a level with Ecuador and Angola. Despite a dramatic increase in worldwide crude oil prices in 2022, Moody’s stated the decision was prompted by the considerable deterioration in Nigeria’s government finances.
Nigeria was downgraded despite the global challenges.
Also, Mrs. Zainab made this know on the same day the National Bureau of Statistics (NBS) released its report, which shows that Nigeria’s total merchandise trade decreased by about N1.24 trillion to N11.60 trillion in the third quarter of the year (Q3 2022) compared to N12.84 trillion in the preceding quarter. Speaking on the challenges facing the incumbent administration, she explains that Nigeria was downgraded despite the global challenges affecting the smooth operation of countries worldwide.
According to her, these significant global challenges include the COVID-19 pandemic, the Ukraine-Russia war and Climate Change, the cost of quantitative easing, high inflation and high-interest rates, among others. She added that Nigeria was rated lower due to external factors, despite the fact that the nation is working hard to flourish regardless of the difficulties cited. In addition, Mrs. Zainab strongly recommends that credit rating agencies evaluate their ratings with caution and up-to-date information.
The minister called for United Nations support.
Furthermore, Mrs. Zainab, who expressed gratitude to the United Nations Population Fund (UNFP) for its assistance rendered to the National Population Commission (NPC), also called for United Nations (UN) support as Nigeria prepares for its general elections and population census next year. She elaborated that the UNFP has provided the country with a special adviser to collaborate with the population commission towards achieving the national census plan scheduled to be carried out in April after the elections.
She continued by requesting the financial help and involvement of the United Nations in carrying out these tasks. Mrs. Amina Mohammed, Deputy Director General of the United Nations (UN), appealed similarly to the international organizations, requesting that they change a system in which African nations borrow money at a more significant cost than their contemporaries in Europe. In addition, Mrs. Amina Mohammed cautioned against removing gasoline subsidies due to the wide-ranging effects that doing so would have.
Country’s total goods trade fell to N11.60 trillion in Q3 2022.
The UN deputy director general acknowledged subsidies’ vital role in the economy. However, she stressed that they must be administered with care, focusing on the things that people value so that they can see how subsidies help alleviate poverty and provide opportunities for young people. According to data released Monday by the National Bureau of Statistics (NBS), Nigeria’s total goods trade fell to N11.60 trillion in Q3 2022 from N12.84 trillion in Q2 2022, a reduction of around N1.24 trillion.
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Nigeria’s global downgrade is not accurate – Credit rating agencies degrade Nigeria based on external factors. – Express your point of view.
Our downgrade rate is so bad. Something should actually be done. It is as if we don’t even have a government in place at all. Let’s Begin to work and ensure we choose the right people in the next election.
This country government is just disgracing Nigeria both home and international. Credit rating agencies degrade Nigeria based on external factors. Is really bad and we have people leading this country.
To my own point of view Nigeria has not been doing in term of generating goods or product for export and this is really showing on the economy because the foreign exchange earnings has reduce serious and without foreign exchange earnings the economy of the country will continue to suffer
Subsidies’ plays a vital role in the economy. Focusing on the things that people value so that they can see how subsidies help alleviate poverty and provide opportunities for young people is important.
This is bad for us been downgrade by credit agencies based on internal factor we need to improve our country our government are not doing much in this country
its sad that the credit rating of Nigeria was lowered, according to reports that were made public by major credit rating firms such as Moody’s and Fitch Ratings.
The Nigerian government lamented the impact on international market borrowing costs that these downgrades, which were said to have been based on external factors rather than reality, had brought about.
Crazy as it may seem, Moody’s has reduced Nigeria’s long-term issuer rating and foreign currency senior unsecured debt rating to B3 from B2 in both local and foreign currency.
The decision was triggered by a significant worsening in Nigeria’s government finances, despite a substantial increase in global crude oil prices in 2022.
In spite of the global issues that are hindering the normal functioning of nations all around the world, Nigeria’s rating was lowered.
It is essential to center one’s attention on the things that people value in order to assist them understand how government subsidies can help reduce poverty and give possibilities for young people.
Nice that they advise that credit rating firms examine their ratings with extreme caution and using information that is as current as possible.
Imaging the most populous black nation ratings to be so degraded and yet our government cannot come up with tangible solutions to bring us at oar with other nations rather it keep getting worse
The United Nations Population Fund (UNFP) has assigned a special adviser to work with the population commission on the national census plan, which is set to take place in April after the elections.
It’s unfortunate that public reports from major credit rating agencies like Moody’s and Fitch Ratings indicate that Nigeria’s credit rating has been downgraded.
We have bunch of illiterate runing the affairs of this nation. They have succeeded in ruining this nation. Now Nigeria has been degraded based on external factors inspite of increase in crude oil production.
These downgrades, based on external causes rather than reality, raised foreign market borrowing costs, which the Nigerian government lamented.
Nigeria’s deteriorating budgetary situation in 2022 prompted the decision, as did the fact that global crude oil prices had risen significantly.
In order to work with the population commission to carry out the planned national census in April after the elections, the UNFP has given the nation a special consultant.
The current administration has brought shame on Nigeria at home and abroad. Agencies that evaluate credit risk downgrade Nigeria because of reasons beyond its control. Is terrible, and we’ve got individuals in charge of the nation.
Since we have bunch of illiterate runing the affairs of the country, it is not surprising that Nigeria is being degraded based on external factors despite increase in crude oil production.
Subsidies are essential to the economy. It’s crucial to concentrate on what people value so that they can understand how subsidies help fight poverty and give young people opportunity.