Fitch upgrades Nigeria’s credit rating, cites growth in Tinubu’s economic reforms

Fitch Ratings has upgraded Nigeria’s credit rating to ‘B’, reflecting growing confidence in the country’s economic direction under President Bola Tinubu’s administration.

The global credit rating agency attributed the upgrade to a series of policy reforms initiated since June 2023. These include exchange rate liberalisation, tightening of monetary policy, halting of deficit financing through the Central Bank, and the removal of costly fuel subsidies.

Fitch noted that the reforms have enhanced policy credibility and reduced near-term risks to Nigeria’s macroeconomic stability, laying a foundation for long-term growth.

According to Fitch, “The upgrade reflects increased confidence in the government’s broad commitment to policy reforms implemented since its move to orthodox economic policies.” The agency emphasized that these reforms are beginning to yield positive results for Nigeria’s economic environment.

The improved rating has significant implications for Nigeria. It signals stronger creditworthiness, which could help the country access international capital at more favourable interest rates, attract foreign investments, and boost investor confidence in the economy.

In May, Fitch had revised Nigeria’s credit outlook from stable to positive, acknowledging the government’s efforts to restore macroeconomic balance. However, the actual rating remained at B- until now.