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Olugbemi. Adeyinka Ogunleye
1 month ago
Overview
Higher budget deficit may further depreciate naira Fitch
Fitch Ratings has warned that Nigeria’s efforts to stabilise its economy could face significant challenges if it fails to meet its fiscal deficit reduction targets. The global credit rating agency noted that a larger-than-expected budget deficit in 2025 could lead to further naira depreciation, higher inflation, and increased borrowing costs, ultimately threatening the government’s reform agenda.
In its recent assessment, Fitch highlighted the Nigerian government’s 2025–2027 Medium-Term Expenditure Framework, which projects a sharp narrowing of the budget deficit. However, Fitch questioned the framework’s assumptions, including oil prices at $75 per barrel and production of 2.06 million barrels per day, including condensates.
More: https://punchng.com/higher-budget-deficit-may-further-depreciate-naira-fitch/
