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International rating agency Says Kaduna Economy Is Stable

International rating agency, Fitch Ratings has affirmed Kaduna state’s long-term foreign and local currency ratings at ‘B+’ and national long- term rating at ‘A+(NGA)’, reflecting … Continue reading International rating agency Says Kaduna Economy Is Stable


International rating agency, Fitch Ratings has affirmed Kaduna state’s long-term foreign and local currency ratings at ‘B+’ and national long- term rating at ‘A+(NGA)’, reflecting the state’s stable financial performance and gradually developing local taxes.

Fitch also took into account the state’s high infrastructural needs amid weak socio-economic indicators by international standards. It noted that the outlook is stable.

Kaduna in north west Nigeria has being affected by incessant insurgency attacks by fundamentalist sects, fighting the Nigerian government across the northern part of the part.

Fitch expects the operating margin to continue to hover around the 40 per cent posted in 2012, reflecting the state’s efforts to develop non-oil revenues while controlling the growth of costs.

The rating agency further stated that the ratings could be upgraded if the development of Internally Generated Revenue System (IGRS) strengthens the operating margin towards 50 per cent while controlling cost growth.