Peter Obi, the Labor Party’s LP presidential candidate, described Moody’s Investors Service’s downgrade of Nigeria’s credit rating from B3 to junk bonds as worrisome.
A statement from the former governor of Anambra on Wednesday said the downgrade sends signals to the global community of the country’s current dismal economy.
Obi said that while the situation was a verdict on governments’ inability to fix the economy, the problem “does not require blame games, but a determined effort to provide solutions.”
The standard bearer opined that Moody’s bleak outlook for the most populous black nation is a wake-up call to the need for fundamental change and a new approach to formulating and executing projects.
Obi stressed that persistent fiscal corruption, institutional vulnerabilities and social problems are issues that everyone must address head-on and seriously.
“I don’t think this is a time for blame games. Governments have done what they could but have not solved the problem.
“Now is the time to bring in the right team with the competence, ability, character and compassion to reverse the trend and solve problems with the urgency and determination it deserves,” he said.
The LP candidate assured that his administration will prioritize policies that are designed to address institutional vulnerabilities and social challenges.
Obi also vowed to lead efforts to create a more stable and predictable business environment and reduce the country’s dependence on oil production.
He unveiled the plan to focus on job creation, boost economic growth, eradicate poverty and ensure Nigeria’s finances are sustainable.
The front-runner added that the “vicious cycle of high government borrowing needs, rising interest rates, institutionalized corruption and limited financing options” will be broken.
It is the second time in three months that Moody’s has downgraded Nigeria’s foreign credit rating, a move that makes it more difficult for the country to raise funds from international markets.
Last October, the agency downgraded the country’s economy ratings to B3 from B2. In November, another credit agency, Fitch Ratings, lowered the country’s long-term foreign currency issuer default rating to B- from B.
