Some group of experts at Moody’s disclosed that the country inflation rate is expected to close the year at 18 per cent.
Presently, The National Bureau of Statistics (NBS) for the month of July said inflation rate increased from 16.5 per cent in June to 17.2 per cent in July.
The agency noted that inflation rate is expected to fall to an average of 12.5 per cent in 2017 on the background of Federal Government reforms in the agriculture sector, among others.
According to the company that provides credit rating globally, the government liquidity pressure is raising amid growth and inflation challenges.
It further noted that projects stagnation in real Gross Domestic Product (GDP) in 2016 and only subdued growth at 2.5 per cent in 2017
“We expect that Nigeria will contain pressures on its public finances in the short term. Greater doubt about severity of impact of challenges, particularly on government liquidity and economic growth, over medium term, they explained”.
It describes the recent devaluation of the Naira by Central Bank of Nigeria (CBN) as credit positive.
The agency added that depreciation in GDP will increase external debt marginally to 5.2 per cent of GDP by end of 2016 from 3.3 per cent in 2015.
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