Moody: Atiku fingers Buhari for downgrade in Nigeria’s credit rating, promises improvement
The Presidential Candidate of the Peoples Democratic Party (PDP), Alhaji Atiku Abubakar, is unhappy with the recent downgrade of Nigeria’s credit rating by Moody’s Investors Service, an international rating agency.
Atiku said the downgrade of the country by the New York-based agency is an indication that the President Muhammadu Buhari-led administration “lacks the critical competencies” to initiate and implement innovative solutions to Nigeria’s problems.
Moody had last Friday downgraded Nigeria’s credit rating from B3 to Caa1, saying the government’s fiscal and debt position was expected to continue to deteriorate and with this downgrading of the country’s foreign debt for the second time in just over three months, the credit rating marks the lowest Nigeria has received since 2006.
Recall that the agency ratings had last October downgraded Nigeria’s local currency and foreign currency long-term issuer ratings as well as its foreign currency senior unsecured debt ratings to B3 from B2 and placed them on review for downgrade.
Atiku, in a series of tweets on Monday, said Moody’s took account of 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.
“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,” he wrote.
“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.”
According to him, the All Progressives Congress (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 fiscal 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,” he said.
Atiku also promised to undertake a review of government procurement processes to ensure value-for-money and eliminate all leakages.
He added that he would focus on non-debt financing by promoting a private sector-led Infrastructure Development Fund for the financing and delivery of key infrastructure projects.