Fitch affirms Nigeria’s ‘B’ rating, projects stable outlook

Global credit ratings agency, Fitch, has affirmed Nigeria’s sovereign credit rating at ‘B’ with a Stable Outlook, citing ongoing economic reforms, rising foreign reserves, and improving macroeconomic conditions.

The announcement was disclosed in a statement by Kamorudeen Yusuf, the Personal Assistant on Special Duties to President Bola Ahmed Tinubu. According to Yusuf, Fitch highlighted a significant increase in Nigeria’s gross external reserves, which climbed to $49.4 billion as of March 2026, a substantial rise from the $32 billion recorded in April 2024.

The agency emphasized that this growth reflects stronger external buffers and growing investor confidence in the nation’s economic management. “Fitch noted that Nigeria’s gross foreign reserves rose significantly… reflecting stronger external buffers and growing investor confidence,” Yusuf stated. “The agency also highlighted improvements in FX market normalization, increased transparency in reserve management, and sustained reforms by the Central Bank of Nigeria.”

The report further projects that Nigeria’s economy will grow by 4.1% in 2026. This growth is expected to be driven by relative exchange rate stability, stronger oil receipts, improved domestic refining capacity, and a steady expansion in non-oil economic sectors. Additionally, inflation is projected to moderate further, continuing a disinflationary trend.

Yusuf noted that the rating affirmation serves as a significant boost to Nigeria’s international credit profile, reinforcing trust among global investors. “This affirmation underscores rising international confidence in Nigeria’s economic direction and validates the reform agenda of the administration of Bola Ahmed Tinubu,” he concluded.

While a ‘B’ rating indicates that Nigeria still faces economic vulnerabilities, particularly regarding debt sustainability and structural constraints, the Stable Outlook suggests that current fiscal and monetary reforms are effectively mitigating major downside risks.