A cityscape in Nigeria showcasing gas flare reduction efforts and urban development, highlighting sustainable energy transformation and economic growt.
Moody’s has upgraded Nigeria’s credit rating from Caa1 to B3, reflecting notable progress in the country’s external and fiscal health. This boost follows the World Bank’s recognition of Nigeria’s strongest economic growth in nearly a decade, fueled by a robust 2024 fourth quarter and improved fiscal strategies. Central to the upgrade is Nigeria’s foreign exchange reform, which has strengthened the balance of payments and increased FX reserves. While inflation remains high, Moody’s notes early signs of easing borrowing costs and reduced inflationary risks. The outlook was shifted to “stable,” with expectations that gains will persist. However, gains may slow if oil prices dip.
Reuters