Fitch Revises Nigeria’s Outlook to Stable, Reflecting Strengthened Reform Agenda

Fitch Ratings has revised the outlook on Nigeria’s credit rating from Negative to Stable, citing increased confidence in the Tinubu administration’s commitment to substantive and far-reaching economic reforms.

While the country’s long-term foreign currency issuer default rating remains unchanged at ‘B’, Fitch observed that the policy measures implemented since mid-2023 are beginning to yield tangible macroeconomic benefits.

The reforms undertaken—including the liberalisation of the exchange rate regime, a tightening of monetary policy, the removal of fuel subsidies, and the discontinuation of deficit monetisation—have contributed to enhanced macroeconomic credibility, the reduction of structural distortions, and improved resilience to external shocks.

“There are clear indications of a strengthened commitment to market-oriented reforms under President Tinubu’s leadership,” Fitch noted. “Although significant challenges remain, Nigeria’s policy trajectory has shifted towards greater macroeconomic stability and improved investor sentiment.”