Fitch Ratings has upgraded Nigeria’s long-term foreign-currency Issuer Default Rating (IDR) to ‘B’ from ‘B-’, citing the country’s ongoing energy sector reforms, among other measures. The agency forecasts that these reforms will sustain Nigeria’s current account surplus over the medium term, driven by improved oil output and export diversification. While Fitch remains optimistic, it acknowledges the risks posed by declining oil prices and capital flow reversals. Nevertheless, it forecasts that the country will have a current account surplus of 3.3% of GDP in 2026, down from an estimated 6.6% of GDP in 2024. Despite Nigeria’s challenges, Fitch believes that the country’s energy sector reforms, exchange rate flexibility, and fiscal policies support a positive economic outlook.
Source: Nairametrics
