Fitch affirms Nigeria at B-, positive outlook

Fitch Ratings has recently affirmed Nigeria's credit rating at B- with a positive outlook, citing the country's large economy, developed domestic debt market, and significant oil and gas reserves as key factors. However, the rating agency also highlighted challenges such as weak governance indicators, high hydrocarbon dependence, and inflation. Tilewa Adebajo, the CEO of CFG Advisory, discussed the implications of these ratings in a recent interview with CNBC Africa. Adebajo commended Fitch for its balanced approach, stating that the report serves as a wake-up call for Nigeria to address its reform agenda. He noted that while progress has been made in implementing reforms to improve policy coherence and credibility, there are still short-term challenges to address. One major concern is the volatility in the foreign exchange market despite high market yields in the bond market. Adebajo emphasized the need for policy consistency and better coordination between monetary and fiscal authorities to ensure economic stability. He pointed out that inflation, fiscal spending, and foreign exchange volatility are the primary areas of concern that must be addressed by the government. Adebajo urged for greater collaboration between the government and the central bank to align monetary and fiscal policies effectively. He stressed the importance of avoiding disruptions such as fluctuating fuel prices that could impact inflation rates negatively. Overall, the discussion highlighted the importance of addressing short-term challenges while staying committed to long-term reform efforts to strengthen Nigeria's economic outlook and attract investor confidence.