The International Monetary Fund (IMF) has said that the drop in demand for Nigeria’s oil poses a challenge to Nigeria’s revenue and thus the sovereign risk of Nigeria.
Jason Wu, assistant director, monetary and capital markets department, IMF, said that Nigeria’s reforms, such as the unification of the FX market, had earlier reduced the sovereign spreads in Nigeria.
“ Nigeria’s sovereign spreads have increased in recent weeks, due to lower global demand for oil, which will weigh on its revenue. These will make investors vigilant,” Wu said.