Moody’s Upgrades Nigeria’s Outlook to Positive After Reclassification

Moody’s Ratings upgraded Nigeria’s economic outlook from ‘stable’ to ‘positive’ on August 28, 2026, following FTSE Russell's confirmation of Nigeria's reclassification to Frontier Market status. Moody’s affirmed Nigeria’s B3 long-term foreign and local currency issuer ratings, citing a stronger external position, robust current account surpluses, and better-than-expected economic growth.

The Nigerian equities market responded positively, with a surge of N1.38 trillion in market capitalisation. As of August 26, 2026, Nigeria’s external reserves reached $53.30 billion, a $1.28 billion increase in over a month and a $12.08 billion rise from the previous year.

Moody’s noted that Nigeria recorded a current account surplus of 5.1% of GDP in 2025, projecting it to widen to 6.1% in 2026. Despite the positive outlook, Moody’s retained the B3 rating, highlighting significant fiscal pressures due to limited revenue-generating capacity.

An upgrade could occur if improvements in the external position are sustained or if revenue reforms succeed.