Positive Fitch Rating For Benue, what it means

FitchRatings.com has announced a positive rating for Benue State, Nigeria.

The ‘A-‘ rating grade, offers numerous benefits and opportunities for Benue State, potential investors, and the Nigerian economy as a whole. This rating indicates an acceptable level of creditworthiness, which can be vital in attracting investments, encouraging economic development, and building sustainable partnerships.

READ: When Benue was rated negative

The revision of the Outlook reflects Benue’s improved fiscal performance, thanks to high
allocations from the federal government and modest external debt. Benue’s ratings reflect its
revenue dependency on transfers from the federal government of Nigeria. Its IDRs are aligned
with Nigeria’s (B-/Positive). The ‘b-‘ Standalone Credit Profile (SCP) reflects Benue’s volatile
operating balance and rising adjusted debt.

The Managing Director,Dr. Raymond Asemakaha assures Benue citizens that this positive Fitchrating will facilitate access to global capital markets, allowing us to secure funding for infrastructure projects, social welfare initiatives, and other developmental programs. It will promote investor confidence and bolster our efforts to diversify the economy, create jobs, and improve the standard of living for our citizens.

Furthermore, this rating serves as a clear sign of the state’s prudent financial management, fiscal discipline, and transparency, which are essential elements for any entity seeking to attract investments. As we continue to prioritize sustainable economic growth, this rating reassures potential investors of our commitment to a favorable investment environment.

On a broader scale, a positive rating for Benue State reflects positively on Nigeria’s overall investment climate. It demonstrates the potential and opportunities that exist within the nation, highlighting the government’s commitment to economic stability and development across all levels – federal, state, and local.

Issuer Profile

Agriculture dominates Benue’s economy, which is the largest soya bean producer in Nigeria. A large informal economy and significant infrastructure gaps hinder the state’s business and socioeconomic development.