FITCH rating agency has described Nigeria’s economy as stable with BB rating, a report Nigerian government has described as a vindication of its performance.
The rating, released on Wednesday, was coming a few days after another respected international rating agency, Standard & Poor, also affirmed a strong and positive rating for the management of the economy.
The agency also affirmed Nigeria’s short-term foreign currency IDR at ‘B’ and country ceiling at ‘BB-.’
According to the report, GDP growth slowed to 6.4 per cent in H113 but had shown resilience in the face of exogenous shocks, including flood in 2012, which hit agricultural output; security problems, especially in the North and increased oil theft and vandalism and the consequent repair shutdowns, which had caused oil output to contract for the second year in a row.
“The non-oil economy has slowed but still grew by 7.9 per cent in 2012 and 7.6 per cent in H113. Non-oil growth should pick-up in H213 as normal weather has resumed and the authorities have responded to security problems. Reforms to the electricity and agriculture sectors could start to boost potential growth,” the report noted.
Responding, the Coordinating Minister of the Economy and Minister of Finance, Dr Ngozi Okonjo-Iweala, …