Fitch Affirms Nigeria's 'B' Rating Amid High Inflation and Fiscal Reforms

Fitch has affirmed Nigeria's 'B' rating with a stable outlook, acknowledging improvements in foreign exchange liquidity and ongoing monetary and fiscal reforms. Despite a strengthened foreign exchange market and rising foreign reserves, persistent inflation and weak government revenue continue to pose challenges.

Fitch projects a slight decline in foreign reserves by 2026 and expects Nigeria's budget deficit to widen due to increased spending. The agency notes the impact of new tax laws in 2026 but highlights concerns about data transparency and policy credibility.

Nigeria's general government debt is forecasted to decline slightly by 2027, supported by domestic financial capacity.