Financial Derivatives Company Limited (FDC), one of Nigeria’s foremost sources of business information and economic data, has predicted that the uncertainties surrounding next month’s elections and the country’s growing debt burden will constitute a major risk to the Nigerian economy this year, making it more vulnerable to external shocks.

In its monthly economic update for December, the Bismarck Rewane-led group listed other local risk factors to look out for during the new year as: Forex pressures, inflation, rising borrowing and logistics costs as well as declining demand in major export markets.

Beyond the influence of external forces, Nigeria’s domestic economic landscape remains rough. The economic uncertainty created by election expectations, a heavy debt service burden, forex pressures, and inflation are a few of the challenges Nigeria’s economy is facing, which will continue to make the country vulnerable to external shocks.