Corruption Is Hindering Upgrade Of Nigeria’s Credit Rating – Moody’s

Moody’s investors service has raised concerns that Nigeria’s slow implementation of structural economic reforms is limiting the country’s chances of a credit-rating upgrade.

According to a statement released by the international rating agency, Nigeria’s economic growth is described as “resilient,” but it notes that any chance of an update from its BA3 rating, which is three levels below investment grade, is being hindered by corruption, weak institutions and vulnerability to oil price drops.

Analysts at Moody’s believe that Nigeria’s momentum for addressing challenging structural reforms has slowed, “most critical of which is the Petroleum Industry Bill said to be holding up significant foreign investment.”

Nigeria’s economy expanded an estimated 6.6 percent in the first quarter of the year, compared with 6.9 percent in the previous three months.