Fitch Ratings, a global credit rating agency, has upgraded its credit rating of Nigeria to B due to recent reforms implemented by President Tinubu's administration.
In making the upgrade, Fitch cites improved policy credibility and reduced near-term risks to macroeconomic stability.
What the new rating means for Nigeria: Fitch now has a more positive outlook on the country's economic stability and creditworthiness. The upgrade will increase the country's ability to attract foreign investment, borrow money on international markets at better interest rates, and boost investor confidence.
“The upgrade reflects increased confidence in the government’s 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 in a statement Friday.
In May, the rating agency lifted Nigeria's credit outlook to positive from stable, citing government efforts to restore economic stability. However, it left the rating on its long-term foreign currency debt at B-.