
Moody's changes Nigeria's credit outlook to positive, affirms B3 rating
Moody鈥檚 Ratings has revised Nigeria鈥檚 credit outlook from stable to positive, while maintaining the country鈥檚 B3 long-term foreign and local currency issuer ratings. This change, announced on Friday, reflects improvements in Nigeria鈥檚 external position and stronger-than-expected economic growth. These factors, if sustained, could enhance the country's ability to absorb external shocks and bolster its economic resilience. The agency noted that these improvements are driven by significant current account surpluses, increased foreign exchange reserves, better functioning of the foreign exchange market, and more effective monetary policy transmission. Gradually higher oil production is also anticipated to support economic growth in 2026 and 2027. Moody's projects Nigeria's current account surplus to reach approximately 6.1 percent of Gross Domestic Product in 2026. Gross foreign exchange reserves, excluding gold, Special Drawing Rights, and the International Monetary Fund position, rose to about 31.2 billion a year earlier, now covering roughly six months of imports. Nigeria's real GDP growth reached four percent in 2025, with expectations for it to remain around four percent over the next few years, supported by the non-oil economy and increasing oil production. Headline inflation declined to 15.4 percent in July 2026 from 25.3 percent a year prior, attributed to fading effects of price adjustments from exchange rate liberalization and fuel subsidy removal, alongside the Central



