Fitch lifts Nigeria's outlook to positive
The agency kept the rating at B but says reforms to the naira and interest rates are working, and that reserves have reached $54.9 billion.
Lagos — The credit rating agency Fitch has raised its outlook on Nigeria from stable to positive, saying reforms to the currency and to monetary policy are paying off, Premium Times reports.
Fitch kept the country's rating at B, a level that signals a material risk of default. A positive outlook means the next move is more likely to be up than down.
"The outlook revision reflects ongoing reform of the policy framework," the agency said, adding that it had "increased confidence that momentum will not be disrupted by upcoming elections".
What has improved
Fitch said the reforms had "supported greater naira flexibility, disinflation" and a faster build-up of foreign reserves than it expected.
Gross reserves stood at $54.9 billion on 9 September, up from $32 billion in April 2024. Fitch expects them to cover 6.3 months of external payments by the end of the year, more than in comparable countries.
It expects the naira to trade around its current level until the end of 2026, even though oil prices may weaken in 2027 and 2028.
What still holds the rating down
The agency listed weak governance, heavy dependence on oil and gas, stubborn inflation, insecurity and low government revenue. Inflation is expected to stay well above that of similar economies.
The election
Fitch expects economic policy to continue broadly unchanged after the general elections early next year, and says the incumbents are on course to win.
This report is based on reporting by Premium Times.
