Connect with us

News

Fitch upgrades Nigeria’s credit outlook to positive, cites economic reforms

Published

on

 

Fitch, a global rating agency, has reviewed Nigeria’s outlook to positive from stable.

A credit rating is a measure of how likely a company or government entity can pay back its debts, based on an independent assessment of its financial health.

Fitch, in a statement on May 3, said the positive outlook partly reflects reforms implemented over the past year to support the restoration of macroeconomic stability and enhance policy coherence and credibility.

 

“Exchange rate and monetary policy frameworks have been adjusted, fuel subsidies reduced, coordination between the ministry of finance and the Central Bank of Nigeria (CBN) improved, central bank financing of the government scaled back and administrative efficiency measures are being taken to raise the currently low government revenue, as well as oil production,” Fitch said.

 

Fitch said the reforms have lessened distortions stemming from previous “unconventional monetary and exchange rate policies,” leading to the return of sizeable inflows to the official foreign exchange (FX) market.

READ  Nigeria recorded biggest economic growth in six years – Buhari

“Nevertheless, we see significant short-term challenges, notably, inflation is high and the FX market has yet to stabilise, and the durability of the commitment to reform is to be tested,” the credit agency said.

“The CBN has stepped up efforts to reform the monetary and exchange rate framework following last year’s unification of the multiple exchange rate windows, and the large differential between the official and parallel market rates has collapsed.

 

“Average daily FX turnover at the official FX window has risen sharply from 2H23, and there has been clearance of USD4.5 billion of the backlog of unpaid FX forwards (the validity of the outstanding USD2.2 billion is being assessed by CBN), and weekly sales of FC to bureaux de changes (BDCs) have resumed (having been suspended since 2021).”

‘RETURN OF SIZEABLE NON-RESIDENT INFLOWS’

Fitch said increased formalisation of FX activity and monetary policy tightening has contributed to a notable rise in foreign portfolio investment inflows and a fast appreciation of the naira at the official FX window.

READ  BREAKING: Nigeria beat South Africa to reach AFCON final

According to the company, this followed the 71 percent “post-liberalisation depreciation between June 2023 and mid-March 2024”.

 

However, the credit rating agency said the exchange rate remains volatile.

Fitch said the continued lack of clarity on the size of net FX reserves is a constraint on Nigeria’s sovereign’s credit profile.

‘FURTHER MONETARY POLICY TIGHTENING ANTICIPATED’

In March, the Central Bank of Nigeria (CBN) raised the monetary policy rate (MPR), which benchmarks interest rates, from 22.75 percent to 24.75 percent.

 

Fitch said it expects further increases in the CBN monetary policy rate in the second half of 2024 and “strengthening of monetary policy transmission, after the recent resumption of open market operations at rates closely aligned to the MPR”.

“We project inflation, which rose to 33.2% yoy in March due partly to exchange rate pass-through and rising food prices, to average 26.3% in 2024 and 18.2% in 2025, still well above our projected ‘B’ median of 4.5%,” Fitch said.

READ  Buhari not a blessing to Nigeria, says Fayose

 

In December 2023, Moody’s, a US-based rating agency, also revised its outlook for Nigeria from stable to positive.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

Cholera outbreak: 15 deaths, 350 suspected cases recorded in Lagos

Published

on

By

 

Cholera has killed 15 persons in Lagos State with 350 suspected cases reported in the state.

 

The Lagos Ministry of Health said there are 17 confirmed cases of cholera in the state.

 

“Lagos State Commissioner for Health Professor Akin Abayomi, disclosed this while speaking on steps taken to control the outbreak in Lagos State. He revealed that 350 suspected cases of cholera were reported in 29 wards across multiple LGAs in Lagos State with 17 confirmed cases and 15 fatalities so far,” the ministry said in a Saturday statement.

 

It quoted Abayomi as saying, however, that the cases of cholera in the state are on a downward move.

 

“The laboratory investigation and test results have so far confirmed Cholera sub-type O-1. This subtype is associated with more severe disease. The pattern of new cases per day varies across LGAS, according to our ongoing surveillance and monitoring updates,” the health commissioner said in the statement signed by the ministry’s Director of Public Affairs Tunbosun Ogunbanwo.

READ  I’m here to answer a higher calling, not to do what is comfortable - Tinubu

 

“Although this is an increase from the numbers published three days ago, cases are now dramatically subsiding in previously affected LGAs due to our interventions and surveillance efforts, however, we are recording some new cases in previously unaffected LGAs, signalling the need for residents to adhere strictly to precautionary, personal, and environmental hygiene measures.”

 

Reporting Symptoms
He said, “inspections of facilities are ongoing. We are prepositioning cholera kits in health facilities across the State. Our efforts to control the outbreak also include the distribution of Oral Rehydration Solutions (ORS), and public health education campaigns”.

 

The commissioner called on residents of Lagos State to adhere strictly to precautionary measures, cooperate with health authorities, and participate in community-wide sanitation activities to mitigate the spread of cholera, particularly as the Eid-al-Adha celebration approaches.

 

“Reporting symptoms like watery diarrhea or vomiting immediately is also crucial, to save lives and prevent transmission to other members of the community,” he said. “Treatment for suspected cholera is provided free of charge at all government facilities as part of government’s standard public health response.”

READ  Strike: ASUU keeps students, FG waiting, to announce decision Monday

Continue Reading

Trending News

Shun donations from unexplained affluence, Osinbajo tells churches

Published

on

By

 

Former Vice-President Yemi Osinbajo has called on the church to question the wealth sources of politicians making donations to support evangelism.

 

Osinbajo spoke on Saturday at the inaugural lecture in honour of the late senior pastor of Fountain Life Church Taiwo Odukoya.

 

The lecture titled ‘Strengthening the Christian voice in government or public office’ was held at the Civic Center, Victoria Island, Lagos.

 

Osinbajo admonished the church to teach good values that Christians can hold on to when they find themselves in public service.

 

“How often do those who receive money from politicians and from other sources ask the source of the money? the former vice-president asked.

 

“So the question is not how many Christians are in government, business, or professions? The question is, what are they equipped with?

 

“What are the relevant principles of the gospel that they know and apply in their daily and professional or public lives?”

 

READ  Nigeria's public debt climbs to N44.06trn - DMO

Tolu Odukoya, associate senior pastor of the church, said the lecture would carry on the legacy of empowerment of her late father.

 

“It is with great joy and a sense of gratitude that I welcome you all to the inaugural Daniel Odukoya lecture,” Tolu said.

 

“Today marks the beginning of a significant tradition in our church, a tribute to my father, our father, the founding father of the Fountain of Life Church.”

 

Ben Akabueze, director-general (DG) of the budget office of the federation, who delivered the lecture, emphasised the need for Christians in power to uphold good tenets.

 

“In today’s world, governments operate in a diverse and pluralistic society, thus diversity is reflected not only in the cultural and ethnic background but also in the multiplicities of world views,” Akabueze said.

 

“Christianity co-exists alongside other faiths and circular perspectives, these diversities necessitate a respectful and collaborative approach to governance.

 

“It is important for Christians to engage with respect and understanding towards other faiths, which should not mean compromising one’s belief but rather, finding ways to express such belief.

 

READ  I’m here to answer a higher calling, not to do what is comfortable - Tinubu

He urged Christians in power to ask for forgiveness and retrace their step when they derail.

 

“I encourage each of you to step into leadership roles, your presence and voice in these spaces can make a profound difference,” he added.

 

“No one is invaluable and leaders will make mistakes, Christians in public office should demonstrate humility and the willingness to seek forgiveness.”

 

 

Continue Reading

News

Kano govt rejects Durbar ban, tackles Ado Bayero, police

Published

on

By

 

Kano State Government has expressed worry over how the Police command in the State has been disobeying the “legitimate instructions” of Governor Abba Kabir Yusuf, Chief Security Officer of the State.

 

Speaking at a press conference in Government House, Kano, on Saturday, the Attorney General and Commissioner of Justice, Haruna Isah Dederi, said, “I am compelled to ask the question: who is usurping the authority of the Commander-in-Chief because some people are dishing out directives to security chiefs in the State so much so that the State Police Commissioner without any consultation with the Chief Security Officer of the State or approval from the State Security Council had issued an order banning Eid-el-Kabir festivities in Kano State.

 

“How can anybody in his right senses ban Sallah festivities in Kano? When did the State Governor cease to be the Chief Security Officer of the State that he will only see such ban on social media? Who is pushing the State Commissioner of Police to usurp the authority of the Governor?

READ  Nigeria recorded biggest economic growth in six years – Buhari

 

“It is important to stress that the Commissioner of Police has been consistent in disobeying the legitimate instructions of the Governor as Chief Security Officer, hiding behind orders from above. I ask again, what is the offence of Kano people that the Nigeria Police penciled them for destruction?”

 

Dederi, while responding to the Federal High Court judgement that upheld the fundamental rights of the 15th Emir of Kano, Aminu Ado Bayero, said the dethroned monarch’s rights have not been infringed upon by the government.

 

He said, “The Federal High Court No.3, Kano, had passed judgement in respect of the matter before it where it held that certain fundamental rights of the deposed emir were infringed upon, including putting him under house arrest. We are mindful of the fact whatever judgement is pronounced by a
court of law; any party that is dissatisfied has the option of appealing against the judgement.

READ  Buhari not in charge of Nigeria, governance out of his hands – Babachir Lawal

 

“Indeed, our team of lawyers is critically studying the judgement of that court with a view to appealing against it. This is because in our view, no fundamental right of the former emir was infringed.

 

“First, no one forced him into Gidan Nassarawa, belonging to the government of Kano State. He went in there and stayed there on his own volition accompanied by security guards. Therefore, no one put him under house arrest.

 

“Secondly, it is known by everyone, that His Excellency, the Executive Governor of the State is the Chief Security Officer of the State. He has the constitutional duty to ensure the protection of lives and properties of the people of Kano State.

 

“When the former emir came in accompanied by hoodlums clearly threatening the peace and orderliness of the State, the Governor was under a duty to act to ensure peace and that was why he issued the arrest order. Even then, the arrest was never affected by any of the security Agencies in the State. Till now, the former Emir has been conducting his activities there as evidenced by the numerous social media presentations.”

READ  Nigeria's public debt climbs to N44.06trn - DMO

It would be recalled that some days ago, the Police announced a ban on Durbar activities during the upcoming Eid-el-Kabir festivities.

 

A statement issued by the Police Spokesperson in the state, Abdullahi Haruna Kiyawa said, “the combined security agencies are for the purpose of overriding public safety, not expecting cultural troupes, costumes, weapons wielding, or any form of insignia representing durbar from any of the traditional stool contenders.

 

“In addition, all other law-abiding people of the State are urged to continue to cooperate with the Police and alongside other relevant security agencies as adequate security deployments have been concluded to ensure low-key hitch-free festive Eid-El-Kabir Celebrations during this trying period.”

 

Continue Reading

Trending News