Fitch has revised Nigeria’ s Long-Term Issuer Default Ratings outlook from Stable to Positive, citing the success of sustained economic reforms and rising foreign exchange reserves.
The global rating agency also noted easing inflationary pressures and improved prospects for economic growth, which the World Bank has p
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, up 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 formalization of foreign exchange transactions, portfolio inflows, higher export earnings, and remittances by Nigerians in the diaspora all played 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 Organization of the Petroleum Exporting Countries’ (OPEC) target of 1. 5 million barrels per day since May 2026.
It added that increased domestic refining capacity was helping to reduce imports of refined petroleum products and the associated demand for foreign exchange.
Fitch projected average inflation at 15.4. 4 percent in 2026, less than half its 2024 level.
It expressed optimism that ongoing tax reforms would improve non- oil revenue mobilization and strengthen government finances.
The Minister of Finance and Coordinating Minister of the Economy, while reacting to the development, said in a statement on Friday, “A positive outlook signals that the rating could be raised if current trends are sustained.”
Mr. Oyedele said the decision was further validation that the aadministration’s reformswere working and positively impacting the economy.
Source: Vanguard