In 2016, Nigerian banks experienced a cutoff in their trade lines with overseas correspondent banks as a result of a mounting backlog brought on by currency shortages.
Investor Service adopted an even tougher approach by reducing the Nigerian government’s rating to B- with a negative outlook. Fitch reduced Nigeria to B- with a stable outlook.
Gregory Ovie Jobome, chief risk officer at Access Bank Plc, asserts that some confidence is also being fuelled by the possibility of a rebound in Nigeria’s oil output in 2019 following the 2022 lows.
Oil profits, which have been low this year despite high oil prices owing to limited output, might help Nigeria’s struggling economy. In October, Nigeria was able to produce more than a million barrels of oil per day.