Nigeria’s economic prospects encouraging: Moody’s affirms credit ratings and positive outlook

Moody’s Investors Service, a leading global credit rating agency, has affirmed Nigeria’s long-term foreign currency and local currency issuer ratings at Caa1, maintaining a positive outlook consistent with its last review in December 2023. The affirmation of the positive outlook reflects improvements in Nigeria’s external balance, prospects of positive economic change, the clearance of the foreign exchange backlog, and the Central Bank of Nigeria’s hawkish monetary stance in the first half of the year.

The ratings agency also kept the country’s foreign currency senior unsecured debt ratings at Caa1 and the foreign currency senior unsecured MTN program rating at (P)Caa1. While Moody’s acknowledges Nigeria’s positive outlook, it notes that inflation remains a significant risk to the country’s economic prospects.

The agency’s decision to maintain Nigeria’s credit ratings is an important indicator of the nation’s financial standing and its ability to attract investment and manage debt.

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