Fitch Lifts Nigeria Outlook to Positive as Reserves Reach $54.9bn

· Finance · Nigeria

Fitch affirmed Nigeria's sovereign rating at 'B' but revised the outlook from Stable to Positive, citing improving external buffers. Foreign-exchange reserves reached $54.9 billion on September 25, up from $32 billion in mid-April 2024. The agency also flagged that interest payments are forecast to absorb 27% of general-government revenue in 2026-2028, almost twice the median for similarly rated sovereigns. The outlook change points to stronger reserve coverage, but the debt-service burden remains the central constraint on the government's finances and borrowing costs.

Why it matters：The change lowers near-term default risk perceptions for Africa's most populous economy and could ease its access to international capital markets.

Key points

  • Fitch affirmed the rating at 'B' and moved the outlook from Stable to Positive.
  • Reserves rose to $54.9 billion on September 25 from $32 billion in mid-April 2024.
  • Interest payments are forecast to absorb 27% of general-government revenue in 2026-2028.

Sources (original reporting)

More stories from this day