Standard & Poor’s upgrades Nigeria’s economic rating

• Group scores Jonathan higher than Buhari in dev strides

IN spite of fiscal and liquidity challenges being faced by Nigeria at the moment as the result of the fall in prices of crude oil minerals at the international market, international rating agency, Standard & Poor’s in its latest assessment  of countries just released has slightly upgraded Nigeria’s sovereign rating at BB- with a negative watch. 

   Previously, the agency’s rating of Nigeria was BB- with a negative outlook. This means that the ratings agency has adjusted its rating slightly by placing the country on negative watch because of the pressure of falling oil prices on the economy as well as political risk. 

  The  key point in the development is that unlike other countries whose economies are largely dependent on crude oil, Nigeria has not been downgraded but just that the country clearly needs to work harder to actualise its recently announced policy response to the current economic challenges.  

    Other oil producing countries, like Saudi Arabia, have also been put on negative watch, while a number of others, including Kazakhstan, Bahrain and Oman were downgraded outright.

    A statement yesterday by Mr. Paul Nwabiukwu, the Special Adviser, Media to the Coordinating Minister for the Economy and Minister of Finance Dr.(Mrs.) Ngozi Okonjo Iweala explained that it was important to note that in spite of the serious challenges arising from the sharp fall in oil prices, Nigeria is doing quite well compared to some other oil producing countries. 

  He said : “For example, while the economies of Russia and Venezuela are projected to contract and experience negative growth this year, Nigeria’s GDP has been projected by the IMF to grow by 4.8% which is quite robust by global standards.

   “Overall, there are two broad implications. First, the economy, despite many challenges, retains key strengths. Second, we have to keep working harder to continue to turn these strengths into real value for the country and its citizens.” 

  Meanwhile, a group under the umbrella of Alliance for Nigeria Peace and Progress has rated President Goodluck Jonathan’s administration far higher in economic development than when Major-General Muhammadu Buhari (rtd) was the head of State of Nigeria.

   The group in a statement made available to our correspondent revealed that there was no basis of comparing the economic achievements of both leaders hence statistics made available showed that Jonathan’s achievements in economic development outweighed those of Buhari.

   While assessing the Gross Domestic Product (GDP) of both leaders in their period, the group disclosed that Nigeria economic rebase in 2014 under Jonathan as classified by World Bank stood at $503 billion and classified as the largest in Africa, while that of Buhari’s GDP in 1985 is just $25.9 billion as recorded in www.academic.edu.

   According to the statement, “Under Goodluck Jonathan in 2014, Nigerian Foreign Investment inflows stood at $7.03 billion retaining her position as the favourite African destination for foreign investments, while under Muhammadu Buhari in 1985, FDI to Nigeria was mere $485,581,300. This was revealed in the statistic record provided by United Nation Conference on Trade and Development (UNCTAD).

   The group which argued that there was no basis for comparing Jonathan’s economic growth to that of Buhari said Nigerians key sectors are working better under Goodluck Jonathan, causing the economy to record a growth average of 7% since 2010 as reported by Global Finance Magazine/World Bank.

“But in 1984 to 1985, Nigerian economy under Muhammadu Buhari was in deepening crisis of stagflation as reported by  www.onlinenigeria.com/economics,” the group disclosed.

   The group, which vowed that Nigerians would never go back to the days of Buhari, enjoined Nigerians to vote for progressive, peaceful and considerate government, which Jonathan’s administration stands for.