Global credit ratings agency Moody’s Ratings has revised Nigeria’s sovereign outlook from “stable” to “positive” while affirming the country’s long-term foreign and local currency issuer ratings at B3.
The ratings agency announced the change on Friday, citing improvements in Nigeria’s external position and stronger-than-expected economic growth.
Moody’s said Nigeria’s improved ability to withstand external shocks was supported by stronger foreign exchange reserves, sizeable current account surpluses and improved functioning of the foreign exchange market.
The agency also pointed to improvements in monetary policy transmission and expectations of higher oil production as factors supporting Nigeria’s economic outlook.
Nigeria’s current account surplus reached 5.1 per cent of GDP in 2025, while Moody’s expects it to increase further in 2026 before moderating in 2027.
Foreign exchange reserves have also increased significantly, providing the country with a stronger buffer against external economic shocks.
Reacting to the development, Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, welcomed the revised outlook, describing it as an indication of growing confidence in the direction of Nigeria’s economy.
The Federal Government said the development reflects progress made through ongoing macroeconomic and fiscal reforms.
However, Moody’s retained Nigeria’s B3 rating, noting that significant challenges remain.
The agency highlighted continued fiscal pressures, limited revenue-generating capacity and weak debt affordability as factors constraining the country’s overall credit profile.
Moody’s nevertheless expects Nigeria’s economy to benefit from stronger oil production and continued improvements in macroeconomic stability.
The latest decision follows similar developments from other international rating agencies. S&P Global Ratings upgraded Nigeria’s sovereign rating to B in May, while Fitch retained Nigeria’s B rating with a stable outlook in April.