Credit ratings agency Moody’s has raised Nigeria’s credit rating from “Caa1” to “B3”, highlighting noticeable progress in the country’s external and fiscal metrics.
This development comes shortly after the World Bank reported that Nigeria’s economy experienced its fastest growth in nearly ten years in 2024.
According to the World Bank, this growth was largely powered by a strong performance in the final quarter of the year and an improved fiscal position. Nevertheless, the Bank cautioned that inflation remains a persistent concern.
“The recent overhaul of Nigeria’s foreign exchange management framework … has markedly improved the balance of payments and bolstered the CBN’s (Central Bank of Nigeria) foreign exchange reserves,” Moody’s said in a statement.
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The agency noted that while inflationary pressures remain, they are beginning to ease. It also pointed out that the effects of recent policy reforms are starting to lower inflation and borrowing costs, fostering greater confidence in the economy’s direction.
Moody’s has also adjusted Nigeria’s outlook from “positive” to “stable”, anticipating that while the pace of improvements may slow—particularly if global oil prices drop—they are unlikely to reverse.
“The stable outlook reflects our expectations that external and fiscal improvements will decelerate but will not reverse entirely,” Moody’s added.
Moody’s Ratings, previously and still legally known as Moody’s Investors Service and often referred to as Moody’s, is the bond credit rating business of Moody’s Corporation, representing the company’s traditional line of business and its historical name.
