3 risks for Nigeria’s investors in 2023
Nigeria's investors face 3 risks in 2023

Key questions this article answers:

1. Last year, JP Morgan reclassified Nigeria’s bonds. This year, Moody’s downgraded the country’s credit to near junk status, indicating that Nigeria is a risky economy. What are the risks involved? 

2. Taking risks is a big part of investing. Investors know this, so they keep their eyes on events like credit rating downgrades. How will investors respond to the risks affecting Nigeria? 


We all take risks, no matter how small. 

But you see, investors take even bigger risks by investing not only in businesses (think funding start-ups and stock buying) but emerging countries like Nigeria. 

For instance, Moody’s—a credit rating agency—just downgraded Nigeria from B3 to Caa1, highlighting a substantially risky economy due to rising debt, low revenues, high inflation, and political instability. Still, if investors decide to invest despite the risks involved, they expect interests often too high for the said country to afford

But what exactly are the risks involved in investing in Nigeria? This is the question today’s article will answer using qualitative data from the World Economic Forum’s (WEF) global risks report for 2023. 

The WEF highlighted five major risks to affect Nigeria in the next two years. However, in this article, we’ll only analyse the first three: terrorist attacks (insecurity), debt crises and cost of living crises. We’ll unpack what’s happening with each risk and how it influences investor behaviour.

This story is only available to Premium subscribers Subscribe or sign in to finish reading

Not ready to subscribe? Register to read a selection of free stories

Dumebi Oluwole

Dumebi Oluwole

Read Latest

Highlights and lowlights of Nigeria's 2023 elections

PREMIUM - 23 MAR 2023

Can Nigerians be optimistic about the future?

PREMIUM - 22 MAR 2023

How Stears accurately predicted Nigeria's election results

PREMIUM - 17 MAR 2023

What are Peter Obi and Atiku's chances at the Presidential Election Tribunal?

PREMIUM - 15 MAR 2023

Download our mobile app for a more immersive reading experience

Scan QR code
mobile download