International rating agency, Standard & Poor’s has cautioned that Nigeria’s economy is in a “clear and present danger,” despite recent data from the National Bureau of Statistics, NBS, revealing that Nigeria earned N12.8 trillion from crude oil export in 2014.
In a presentation given by Konrad Reuss, Regional Manager of S&P in sub-Saharan Africa at a seminar on Nigeria in Sandton, north of Johannesburg, the rating agency gave Nigeria on a negative sovereign ratings watch, BB minus.
According to him, the factors that put the Nigerian economy at risk include the Boko Haram insurgency in the northern part of the country, the fall in oil prices, as well as the forthcoming elections.
Reuss explained that Standard & Poor’s rated Nigeria based on its six main categories and found out that Nigeria was weak in three classifications, namely: institutional and governance effectiveness, economic structure and growth, fiscal flexibility and performance.
In addition, Reuss said Nigeria was classified as neutral in external liquidity and international investment position and monetary flexibility, while its only area of strength was in its debt burden.