Atiku tackles Buhari over Nigeria’s ‘significant downgrade’ by US firm

The Peoples Democratic Party (PDP) presidential candidate, Atiku Abubakar, said on Monday the All Progressive Congress (APC) lacks the ability to grow Nigeria’s economy after credit rating firm, Moody’s, downgraded the country.

Moody’s had during the weekend downgraded Nigeria’s credit rating from B3 to Caa1, raising a red flag to investors eyeing the country’s treasury bills, bonds, and other debt securities used to borrow money from global creditors or investors.

Nigeria’s previous rating of B3 means the country has a “high credit risk,” a status that discourages investors from investing in a country’s debt securities.

The Caa1 status further worsens Nigeria’s outlook in the capital market, as it implies the country has a “very high credit risk.”

This also reduces investors’ confidence in the nation’s debt instruments.

Moody’s downgrade will make it more difficult for Nigeria’s government to raise or borrow funds to finance capital projects in the 2023 budget.

In a series of tweets on his Twitter handle, on Monday, Abubakar said the downgrade was expected as APC’s political leadership has failed in the management of Nigeria’s fiscal resources under President Muhammadu Buhari.

Read also:Atiku a dishonest ethnic player unworthy of Northern votes —Keyamo

He wrote: “Late last week, Moody’s Investors Service (The Moody’s) sadly, but not unexpectedly, downgraded the Nigerian Government’s Credit Rating from B3 to Caa1. This is a very significant downgrade.

“Moody’s notes the FGN’s deteriorating fiscal and debt position and its lack of capacity to respond to same; it notes the ‘exacerbating policy trading off between debt servicing and the financing of critical sectors, including education, health, and other social programmes.

“It also notes the government’s inability to curtail its addiction to deficit financing and its appetite for more funds from the Central Bank’s Ways and Means.

All three observations are a direct indictment of the country’s political leadership for its failures in the management of our fiscal resources.

“The APC-led government lacks the critical competencies to initiate and implement innovative solutions to our problems and deliver on their mandate with the desired impact.

“If given the opportunity to lead the country, I will act differently and change the economic direction of Nigeria for the better. I will undertake far-reaching fiscal restructuring to improve liquidity and the management of our fiscal resources.

“Among others, I will undertake an immediate review of government spending with a view to eliminating all leakages arising from subsidy payments.

“Second, I will stop all financial support to ailing and under-performing State-Owned enterprises.

“Third, I will take steps to improve spending efficiency by gradual reduction of government recurrent expenditures.

“Fourth, I will undertake a review of government procurement processes to ensure value for money and eliminate all leakages.

“Finally, I will focus on non-debt financing by promoting a private sector-led Infrastructure Development Fund for the financing and delivery of key infrastructure projects.”

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