Fitch Ratings has upgraded Nigeria’s credit outlook to positive from stable, highlighting increased foreign exchange reserves and improved economic management. The rating agency affirmed Nigeria’s long-term issuer default rating at ‘B’. This follows recent improvements in the country’s external position and a moderation in inflation.
The upgrade reflects sustained government reforms and stronger external reserves, according to officials. The Federal Government noted that the change signals growing confidence in Nigeria’s economic stability. However, underlying credit risks remain unresolved.
Nigeria’s economic outlook has improved over the past year, with foreign exchange reserves reaching $55 billion. This marks a significant increase from previous levels. The government has also implemented measures to stabilize inflation, which has been a long-standing challenge.
The positive outlook comes amid ongoing efforts to address structural economic issues. While the rating agency acknowledges progress, it warns that challenges such as infrastructure gaps and public debt continue to pose risks. The upgrade is seen as a step toward greater international confidence in Nigeria’s economic prospects.
