Published On: Tue, Jan 31st, 2017

Nigeria urged to borrow to defy recession

FBN 1LAGOS, (CAJ News) – FIRST Bank of Nigeria (FBN) is proposing extensive borrowing from international financiers to resuscitate its economy whose sovereign rating has been revised from stable to negative.
Fitch last week revised the outlook on its B+ Nigeria sovereign rating for foreign and local currency, long-term obligations to negative.
The rating firm acted in response to the prevailing foreign currency liquidity, and its impact on growth, the public finances and the banking sector.
Nigeria’s first recession since 1994 should also be attributed, Fitch observed, to the sharp decline in oil output last year.
Looking ahead, it accepts the assumption of average production of 2,2 million barrels per day (mpbd) in this year’s budget proposals.
“We welcome this trend,” stated FBN.
“We think the FGN should borrow extensively from multilateral agencies at the concessional rates available.”
Nigeria, Africa’s biggest economy is experiencing a recession blamed largely on the declining oil industry.
CAJ News

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