Despite falling oil prices and currency slump, Moody’s Investors Service, a global credit rating agency, has stated that the Nigerian economy has remained resilient.
The country’s economy has been predicted to expand by five per cent in 2015, according to Aurelien Mali, Moody’s senior analytical adviser.
“Nigeria benefits from a resilient economy and robust fiscal position, although the recent drop in oil prices will likely put pressure on public finances and could lead to widening of fiscal deficits”, Moody’s said.
The agency also rates Nigeria’s debt at Ba3, three levels below investment grade, with a stable outlook. “Nigeria’s government debt, which is very low at 13.2 per cent of gross domestic product, will probably increase to 14.6 per cent in 2015”, Moody’s said.
Nigeria relies on crude exports for about 70 per cent of its income and 95 per cent of foreign earnings, leaving it vulnerable to price and quantity shocks.
As a proportion of government revenue, debt is set to rise to 130 per cent from 121.8 per cent, the agency said, adding that both ratios are low compared to market peers rated at the same Ba3 with Nigeria.

Folashade Olubayo
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