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Downgrade of Nigeria’s credit rating confirms bleak economy – Peter Obi

 


Peter Obi, the Presidential Candidate of the Labour Party, LP, has described as worrisome the lowering of Nigeria’s credit rating by Moody’s Investors Service from B3 to junk bonds.

 

A statement by the former Anambra governor on Wednesday said the downgrade sends signals to the global community of the country’s current bleak economy.

 

Obi said though the situation was a verdict on governments’ inability to fix the economy, the issue “does not call for blame games but a determined effort to provide solutions”.

 

The flagbearer opined that Moody’s dismal outlook for the most populous black nation is a wake-up call on the need for fundamental change and a new approach to formulating and executing blueprints.

 

Obi stressed that persistent fiscal rascality, institutional vulnerabilities, and social problems are issues everyone must address frontally and with seriousness.

 

“I don’t believe this is a time for blame games. Governments have done what they could but didn’t solve the problem.

 

“It’s now time to bring in the right team with the competence, capacity, character, and compassion to reverse the trend and solve the problems with the urgency and determination it deserves,” he noted.

 

The LP candidate assured that his administration would prioritise policies that are tailored towards addressing institutional vulnerabilities and social challenges.

 

Obi also promised to lead efforts to create a more stable, predictable business environment, and reduce the country’s reliance on oil production.

 

He revealed the plan to focus on creating jobs, boosting economic growth, eradicating poverty while ensuring Nigeria’s finances are sustainable.

 

The frontrunner added that the “vicious cycle of high government borrowing needs, rising interest rates, institutionalised corruption, and limited funding options” will be broken.

 

It is the second time in three months that Moody downgraded Nigeria’s foreign credit rating, an action that makes it harder for the country to get funds from international markets.

 

Last October, the agency downgraded the ratings of the country’s economy to B3 from B2. In November, another credit agency, Fitch Ratings, lowered the county’s long-term foreign-currency issuer default rating to B- from B.

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