An All Progressives Congress (APC) supporter carries a book with a picture of presidential candidate of the APC, Bola Tinubu who was declared the winner of Nigeria’s 2023 presidential election, in Abuja, Nigeria, March 1, 2023. REUTERS/Esa Alexander
Likely delays in policy implementation in the wake of Nigeria’s contested election result increase the medium-term risks that debt restructuring will be needed, Lucie Villa, vice president and senior credit officer at Moody’s Investors Service, tells The Africa Report.
There are, Villa says, four main factors which will shape the sustainability of Nigeria’s public finances. These are oil production levels, the universal petrol subsidy, non-oil revenue and interest rates. If there is no clear improvement in any of these factors then the “trend of fiscal deterioration will continue.”
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