Lagos: Dr Patience Oniha, Director-General of the Debt Management Office (DMO), has announced that Nigeria is on a steady path of economic recovery, bolstered by fiscal reforms, improved credit ratings, and focused investments in infrastructure and environmental sustainability. Oniha made these remarks during an investors meeting for the Series III Sovereign Green Bond issuance.
According to News Agency of Nigeria, Oniha highlighted significant improvements in Nigeria's macroeconomic fundamentals, such as stabilizing inflation, gradual GDP growth, and a rebound in crude oil production. Global credit rating agencies, including Moody's and Fitch, have upgraded Nigeria's outlook, which reflects growing investor confidence in the country's economic direction.
Oniha noted improvements in credit ratings, stating that there is a clear difference from previous standings, indicating that ongoing reforms are taking effect, albeit gradually. She pointed out that inflation, which initially spiked to 30 percent, has stabilized between 23 and 24 percent, signaling a positive response to monetary and fiscal policies.
Emphasizing the significance of GDP growth and infrastructure investments, Oniha mentioned that post-COVID growth has been observed, although there is recognition that it should be higher. The focus on infrastructure through the three-year National Development Plan, which is private sector-led, is expected to accelerate growth as improvements are realized.
Oniha also addressed the recovery in oil production, noting that Nigeria increased output from below one million barrels per day to between 1.5 and 1.6 million barrels. Reforms in the oil sector, including the transformation of the NNPC into a limited liability company, are beginning to show results.
Additionally, Oniha discussed Nigeria's commitment to climate financing, announcing plans for a N50 billion Sovereign Green Bond. This bond is part of a broader strategy to tackle climate change and support environmental sustainability, following earlier issuances in 2017 and 2019, which totaled approximately N25.69 billion.