Moody’s has revised Nigeria’s outlook to “positive” from “stable”, citing the country’s improved ability to withstand external shocks due to its increased foreign exchange reserves and stronger-than-expected economic growth.
Africa’s third-largest economy, a major oil producer, has benefitted from a surge in crude prices due to the Middle East conflict and a ramp-up in refined petroleum product exports, boosting the country’s current account surplus.
Moody’s said on Friday that it expected the West African nation’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” as it reflects fiscal pressures arising from limited revenue-generation capacity and weak debt affordability, notwithstanding a moderate debt burden.
Peer S&P Global Ratings in May upgraded Nigeria’s sovereign rating to “B” from “B-“, citing sustained structural reforms and improving credit worthiness, while a month earlier, Fitch affirmed Nigeria’s rating at “B” with a “stable outlook”.
- Moody's revised Nigeria's outlook to "positive" from "stable" due to improved resilience from increased foreign exchange reserves and strong economic growth.
- Nigeria's economy has experienced growth supported by a surge in crude oil prices related to the Middle East conflict and increased refined petroleum exports.
- Moody's expects Nigeria's current account surplus to remain sizeable even if oil prices decrease significantly.
- The World Bank projects Nigeria's economic growth to be around 4.2% in 2026, supported by stronger oil revenue, fiscal discipline, and tight monetary policy.
- Moody's affirmed Nigeria's rating at "B3" due to ongoing fiscal pressures and limited revenue-generation capacity despite a moderate debt burden, while S&P and Fitch have also recently rated Nigeria positively.
Moody's has revised Nigeria's outlook to "positive" from "stable", citing the country's improved ability to withstand external shocks due to its increased foreign exchange reserves and stronger-than-expected economic growth.
Africa's third-largest economy, a major oil producer, has benefitted from a surge in crude prices due to the
Moody's said on Friday that it expected the West African nation's surplus "to remain sizeable even under materially lower oil prices".
Moody's affirmed the country's ratings at "B3" as it reflects fiscal pressures arising from limited revenue-generation capacity and weak debt affordability, notwithstanding a moderate debt burden.
Peer S&P Global
