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Turbid Periods Ahead For The Nigerian Economy? - Politics - Nairaland

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Turbid Periods Ahead For The Nigerian Economy? by violent(m): 6:29pm On Oct 24, 2010
The Nigerian economy was known to have faired well during the global economic downturn in spite of oil prices collapsing and the domestic stock market falling sharply, the country managed to post growth of around 6 percent, a remarkable result compared with smaller and similar economies across the world.

However recent turn of events, of key concerns, puts the outlook of the future of Nigerian economy in turbid waters.  This is particularly evident in recent highly tensed political state and the downward review of the country's overall fitch ratings.  The negative BB ratings now imply that the government will be forced to pay out higher yields on his debt instruments and might encounter difficulties raising debt capitals from international markets in the near future should it intend to.

More noteworthy is the fact that the country's dependence on oil and for which it has maintained a monopolistic market in the African climate, consistently for decades is likely to come under direct competition with the British oil major {Tullow oil} in Ghana, boasting of a capacity to produce and export over 1.6 billion barrels or more per day.

Additionally, the credit freeze in Nigeria is still very prominent and small business have not been able to access necessary funds to enable them to expand and grow. Furthermore, activities and investment instruments in the financial services industry appears to be under matured at the moment, this in turn increases the cumulative effect of the total risk a local investor has on his portfolio no matter how risk averse they are.

To all political and economic intellectuals out there, what do you perceive as the future economic outlook for Nigeria?

How do you think the Nigerian government will be able to fund its elections, develop new projects, manage existing project and at the same time service its liabilities?

what effect if any will the current tensed political climate have on foreign investor's sentiment and the overall outlook for Business and Investments in Nigeria?. .

What opportunities are there for new investors?

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