Citing the country’s improved ability to withstand external shocks due to its increased foreign exchange reserves and stronger-than-expected economic growth, Moody’s yesterday revised Nigeria’s outlook to “positive” from “stable,” according to a Reuters report.
Nigeria has benefited from a surge in crude prices due to the Middle East conflict and a ramp-up in refined petroleum product exports, which is boosting its current account surplus.
The credit rating agency said it expects Nigeria’s surplus “to remain sizeable even under materially lower oil prices.”
The World Bank has projected Nigeria’s economic expansion at about 4.2% in 2026, and has said stronger oil revenue, fiscal discipline and tight monetary policy could help strengthen macroeconomic stability and contain inflation.
Moody’s affirmed the country’s ratings at “B3” asit reflects fiscal pressures arising from limited revenue-generation capacity and weak debt affordability, notwithstanding a moderate debt burden.
S&P Global Ratings in May upgraded Nigeria’s sovereign rating to “B” from “B-“, citing sustained structural reforms and improving creditworthiness, while a month earlier, Fitch affirmed Nigeria’s rating at “B” with a “stable outlook”.
Nigeria’s foreign exchange reserves rose above $53 billion for the first time in more than 17 years, reaching $53.11 billion as of August 24, 2026.
Interestingly, the CBN had projected a reserves level of approximately $51.04 billion for the whole of 2026.