Moody's Changes Nigeria's Outlook to Positive as Economic Confidence Improves

By Nigerian Niger Delta Reporters

ABUJA — International credit rating agency Moody's has revised Nigeria's sovereign outlook from stable to positive, citing improvements in the country's external position and stronger-than-expected economic performance.

Moody's, however, maintained Nigeria's long-term sovereign rating at B3.

The positive outlook reflects growing confidence in Nigeria's ability to withstand external economic pressures, supported by improved foreign-exchange reserves, stronger economic growth and better external conditions.

The assessment comes as Nigeria continues implementing economic reforms aimed at improving fiscal stability, foreign-exchange liquidity and government revenue.

Despite the positive development, Moody's noted that Nigeria continues to face significant fiscal challenges, including limited government revenue and weak debt affordability.

The rating agency's position therefore represents encouragement for the country's reform programme while also highlighting the need for continued fiscal discipline.

For Nigeria, an improved sovereign outlook could potentially strengthen investor confidence and improve access to international capital over time.

Nigerian Niger Delta Reporters will continue monitoring the impact of the outlook revision on Nigeria's economy, borrowing costs and foreign investment.