Standard & Poor’s has retained Nigeria’s sovereign rating at BB- but with a negative watch. Previously, it was BB-.with a negative outlook.

“This means that the ratings agency has adjusted its rating slightly by placing the country on negative watch because of the pressure of falling oil prices on the economy as well as political risk. Thus, Nigeria has NOT been downgraded but the country clearly needs to work harder to actualise its recently announced policy response to the current economic challenges,” Paul C Nwabuikwu, Special Adviser to the Coordinating Minister of the Economy and Minister of Finance, Dr. Okonjo-Iweala, said last night.

Nwabuikwu while reacting to the just released latest assessment by Standard & Poor’s, noted that “other oil producing countries, like Saudi Arabia, have also been put on negative watch, while a number of others, including Kazakhstan, Bahrain and Oman were downgraded outright.”

According to Nwabuikwu in a statement made available to News Express by e-mail, “It is important to note that in spite of the serious challenges arising from the sharp fall in oil prices, Nigeria is doing quite well compared to some other oil producing countries. For example, while the economies of Russia and Venezuela are projected to contract and experience negative growth this year, Nigeria’s GDP has been projected by the IMF to grow by 4.8% which is quite robust by global standards.

“Overall, there are two broad implications. First, the economy, despite many challenges, retains key strengths. Second, we have to keep working harder to continue to turn these strengths into real value for the country and its citizens.”

•Photo shows Okonjo-Iweala.