Fitch who affirmed the country's long-term foreign-currency issuer default rating at ‘B+’ with a stable outlook, stated that Nigeria will continue to experience a sluggish recovery, driven by the rebound in oil prices and the expansion of services.
“A large infrastructure deficit, which is illustrated by acute power supply shortages and security challenges, also dampen the medium-term growth outlook. Nigeria’s ratings are supported by the large size of its economy, a track record of current account surpluses and a relatively low general government debt-to-GDP. This is balanced against poor governance and development indicators, structurally low fiscal revenues and high dependence on hydrocarbons. The rating is also weighed down by subdued GDP growth and inflation that is higher than in rating peers," it said.
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