Nigeria’s sovereign credit still under risk?

Nigeria’s sovereign credit is still under risk despite the possibility of a smooth transfer of power in the country, a global rating agency says.

President elect, Muhammadu Buhari

Punch Newspaper reports that statistical rating organization, Fitch Ratings, says the scheduled change in Government in May 2015 has introduced ‘an economic policy uncertainty following smooth elections and the authorities’ proactive response to lower oil prices this year’.

In a statement released on Thursday, April 17, 2015, Fitch Ratings said;

“The first transition from an elected ruling party to an opposition party, via a smoother and more credible electoral process than was widely expected, is positive for Nigeria and suggests that the country’s democratic institutions are getting stronger (governance indicators are much weaker than the ‘BB’ rating category medians).

“However, tensions may yet reignite in the Delta region and Boko Haram continues to disrupt economic and political activities in the North-Eeast. The advent of a new government creates uncertainty about its economic policy.”

Fitch has also enthused that the now-ruling party All Progressives Congress will not change the policies set by the current (or rather outgoing) administration adding that there will be a continuous focus on areas such as oil, power and agricultural reforms.

The agency has stated that President-elect Muhammadu Buhari’s economic team will not be tested so quickly and has even not taken shape yet.

Buhari after four attempts emerged as the winner of the 2015 Presidential elections, ousting incumbent President Goodluck Jonathan.

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