Fitch Downgrades Nigeria’s IDR to ‘B’ with a Negative Outlook

A new report by Fitch Ratings (Fitch) has downgraded Nigeria’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to a ‘B’ (from B+) with a Negative Outlook. According to Fitch, the rating depicts the current burden on Nigeria’s external reserves due to COVID-19, as well as the recent dip in global oil prices.

The report also noted that excessive external pressures would have higher chances of disruption to Nigeria’s macroeconomic adjustment, while the country's uncertain monetary and exchange rate policies, as well as the absence of reliable fiscal buffers, added to the potential economic disruption. The report also stated that the current situation could lead to an increase in the Fed...