Global rating agency, Fitch, has cut its 2017 economic growth forecast for Nigeria to one per cent from 1.5 per cent.
The Nigerian economy had returned to growth in the second quarter of 2017 after shrinking by 1.5 per cent in 2016, but the recovery has been fragile because oil revenues remain depressed and hard currency is short.
Speaking at a Fitch event in London, the Director for Sovereigns, Jermaine Leonard, said although Nigeria’s 2018 budget had an oil production target of 2.3 million barrels per day, the Fitch forecast was just above two million barrels, Reuters reported on Friday.
Partly, this was linked to a potential flare up in violence in the Niger Delta as elections approach in 2019, he said.
Fitch currently rates Nigeria at B+ with a negative outlook, which reflected the fact that there were still a lot of elements, which could take it down, said Leonard.
“But at this point, we are cautiously optimistic,” he added.
