Moody's Revises Nigeria's Sovereign Outlook to Positive, Citing Stronger Reserves and Growth
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Moody's has revised Nigeria's sovereign outlook to positive from stable, citing stronger foreign exchange reserves and better-than-expected economic growth, while affirming its B3 credit rating.
Moody's Ratings has revised Nigeria's sovereign credit outlook to "positive" from "stable," citing stronger foreign exchange reserves and better-than-expected economic growth. The agency affirmed Nigeria's long-term foreign-currency rating at B3, still six levels below investment grade.
Moody's said Nigeria's gross foreign exchange reserves rose to about $44.4 billion in June 2026, up from $31.2 billion a year earlier, covering about six months of import needs. The agency also pointed to declining headline inflation, which fell to 15.4 percent in July 2026 from 25.3 percent a year earlier.
Real GDP growth reached about 4 percent in 2025, Moody's said, driven primarily by robust non-oil activity. Despite the improved outlook, Moody's cautioned that Nigeria's fiscal position, particularly its limited revenue-generating capacity, remains a significant weakness.