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Fitch Downgrades Nigerian Rating Outlook on Dollar Shortages

  • Lack of foreign currency hampering West African economy
  • Low government revenue poses risk to debt sustainability
Updated on

Fitch Ratings Ltd. revised the outlook on Nigeria to negative from stable over concerns that a lack of foreign exchange will hamper the economy, and affirmed the West African nation’s rating at B+, four steps below investment grade.

While Nigeria’s economy will probably expand at 1.5 percent this year, after contracting by an estimated 1.5 percent in 2016, the non-oil industry will continue to be constrained by foreign-currency shortages, the ratings company said in an e-mailed statement on Wednesday.