Fitch has revised Nigeria’s Long-Term Issuer Default Ratings outlook from Stable to Positive, citing the success of the sustained economic reforms and rising foreign exchange reserves.
The Global rating agency also noted the easing inflationary pressures and improved prospects for economic growth, which the World Bank has projected at 4.3 per cent for this year. The agency also affirmed Nigeria’s rating at “B”.
According to the agency, exchange rate flexibility, declining inflation and faster-than-expected accumulation of foreign exchange reserves were major factors behind the improved assessment. Nigeria’s gross external reserves hit $55 billion last month from $32 billion in mid-April 2024.
Fitch said the positive outlook reflected its growing confidence that the government would sustain reforms aimed at strengthening Nigeria’s policy framework and improving macroeconomic stability.
The formalisation of foreign exchange transactions, portfolio inflows, higher export earnings and remittances by Nigerians in the Diaspora all play roles in the new rating.
The projected expansion is expected to be driven largely by non-oil economic activities. The rating agency also noted that Nigeria’s crude oil production had met the Organisation of Petroleum Exporting Countries’ (OPEC) target of 1.5 million barrels per day since May 2026.
