Lagos - The political uncertainty and Boko Haram scourge is projected to worsen the country’s economic prospects.
According to an analyst, the economy is set to weaken, although non-oil growth will remain robust.
Real non-oil growth is forecast to slow to 5,5 percent in 2015, from 7,4 percent in 2014 due to the devaluation of the naira and election-related uncertainty.
“The negative outlook stems mostly from the policy uncertainty surrounding the hotly contested election. The results are still pending, with differing news reports on who is leading the polls,” said Rand Merchant Bank.
Also Read: Jonathan spurned by voters in Boko Haram heartland
The presidential poll has emerged a two-man contest between incumbent Goodluck Jonathan and Muhammadu Buhari, the former military leader.
Meanwhile, ratings agency Fitch affirmed Nigeria's sovereign rating at 'BB-', but revised the stable outlook downwards to negative as fiscal and external buffers have been eroded significantly and political uncertainty has heightened.
Overall, Fitch assumes the following outcomes that support its rating: an oil price averaging US$65/bbl in 2015 and US$75/bbl in 2016; relatively conservative macro policy and structural reform, depending on the outcome of the election; and the continuance of the Boko Haram insurgency.
- CAJ News