Global credit agency Fitch Ratings has upgraded Nigeria’s long-term foreign-currency issuer default rating (IDR) to B with a stable outlook, citing President Bola Tinubu’s economic reforms.
The agency said policies such as fuel subsidy removal and naira liberalisation have improved macroeconomic stability and reduced external risks.
The upgrade, which follows a positive outlook assigned last year, is expected to boost foreign investment and lower borrowing costs. Fitch noted that tighter monetary policy and forex market reforms have increased liquidity and narrowed the gap between official and parallel exchange rates.
In a related development, the World Bank announced over $16billion in funding for Nigeria across 28 projects, mostly through concessional loans.
Meanwhile, the Central Bank of Nigeria (CBN) reported a $16 billion in fundingforNigeria across 28 projects, mostlythrough concessional loans.
Meanwhile, the Central Bank of Nigeria(CBN) reported a $6.83 billion balance of payments surplus for 2024—a sharp reversal from previous deficits.
The CBN also confirmed that J.P. Morgan has applied for a merchant banking licence to expand its operations in Nigeria.
Despite progress, Nigeria’s B rating remains below investment grade, indicating lingering risks.
Analysts say sustained reforms, including energy sector adjustments, will be key to maintaining momentum.
