Fitch Upgrades Nigerias Credit Outlook, Citing Policy Reforms, Economic Stabilization

Global credit rating agency Fitch has revised Nigerias long-term foreign-currency issuer default rating IDR outlook from Negative to Stable , upgrading the countrys rating from B- to B. The IDR reflects an entitys vulnerability to default on financial obligations, including distressed debt exchanges.

In a statement released on Friday, Fitch said the decision was driven by renewed confidence in Nigerias policy direction, following the implementation of significant economic reforms since June 2023.

The upgrade reflects increased confidence in the governments broad commitment to policy reforms implemented since its move to orthodox economic policies in June 2023, including exchange rate liberalisation, monetary policy tightening and steps to end deficit monetisation and remove fuel subsidies, Fitch said.

These reforms, according to Fitch, have improved policy coherence and credibility, helping to reduce economic distortions and short-term risks to macroeconomic stability.

These have improved policy coherence and credibility and reduced economic distortions and near-term risks to macroeconomic stability, enhancing resilience in the context of persistent domestic challenges and heightened external risks.