Fitch Ratings Affirms Nigeria's 'B' Rating with Stable Outlook

Fitch Ratings has affirmed Nigeria's long-term foreign currency issuer default rating (IDR) at 'B' with a stable outlook. This rating reflects Nigeria's large economy, the development of a liquid domestic debt market, and substantial oil and gas reserves, alongside improvements in monetary and exchange rate policy frameworks.

However, Fitch noted that Nigeria's credit rating is constrained by weak governance indicators, high dependence on hydrocarbons, high inflation, and security challenges. The agency reaffirmed that the Nigerian authorities continue to implement reforms aimed at restoring macroeconomic stability and enhancing policy credibility.

Recent measures by the Central Bank of Nigeria (CBN), including the removal of foreign exchange restrictions on repatriated oil export proceeds, are expected to support further normalization of the forex market. Fitch analysts expect a modest depreciation of the naira in the near term due to rising fiscal pressures and heightened external risks.

Nigeria's gross foreign exchange reserves rose to $49.4 billion by the end of March 2026, with a forecasted decline to $47 billion by the end of 2026.