Credit rating agency, Fitch Ratings says the weak state of the naira will worsen Nigeria’s debt profile.
“We think the debt burden is sustainable, but it is increasing, while government revenues have fallen as a proportion of GDP,” the agency said.
The agency then “downgraded Nigeria’s sovereign rating to ‘B+’/Stable from ‘BB-’/Negative in June”.
“The downgrade reflected increased fiscal and external vulnerability due to the sharp fall in oil revenue and the authorities’ indecisive policy response,” the company said.
What this means is that an end to the current economic downturn isn’t in sight.