Moody’s lowered Nigeria’s local currency and foreign currency long-term issuer ratings, as well as its foreign currency senior unsecured debt ratings to B3 from B2 and placed them on review for further downgrade.
The agency said in its statement that the downgrade was driven by the significant deterioration in Nigeria’s government finances as well as its external position, exerting increasing pressure on the sovereign credit profile despite a strong increase in international crude oil prices in 2022.
Looking ahead, Moody’s highlighted that the scope for the government to deliver on fiscal consolidation is constrained, adding that it expects government debt affordability to weaken further in the years to come from already very weak levels. Moody’s said that risks are skewed in favour of external and fiscal pressures further intensifying and constraining the government’s access to funding
