The global rating firm, Moody's expected Nigeria's debt and government revenue to continue to damage. It has thus downgraded the long-term ratings of foreign currency and local currency issuers.

The global rating agency lowered the ratings of senior unsecured foreign currency debt to Caa1 from B3 and changed the outlook to stable in its latest valuation. According to this, Moody's today's rating action concludes the review of the downgrade initiated on October 21, 2022. For this, he states that he also lowered the rating of the MTN Senior Unsecured Foreign Currency Program to (P) Caa1 from (P) B3. According to the rating firm, the forecast of a further deterioration in the government's fiscal and debt situation is the main driver of the rating downgrade.

For Moody's, “ultimately, the risk of a negative feedback loop developing over the next two years between higher government borrowing needs and rising interest rates has intensified, exacerbating the political compromise between debt service and funding other R&D positions. key thoughts”. While the government's funding options remain narrow and dependent on central bank funding, he noted that the 2023 budget plan is marked by an even larger budget deficit than in 2022.