Moody’s moves Nigeria sovereign outlook to Positive, affirms B3 ratings

On August 28, 2026 Moody’s changed Nigeria’s sovereign outlook from Stable to Positive while affirming the long‑term foreign‑ and local‑currency issuer ratings at B3, citing a stronger external position, higher reserves and stronger‑than‑expected growth that could support a future upgrade if sustained.

The outlook change signals lower perceived tail risk on Nigeria’s external curve and should, all else equal, reduce risk premia on dollar‑denominated sovereign bonds — particularly on belly and long‑dated tranches — and ease dollar funding conditions for FX‑exposed corporates. Actual spread compression depends on investor conviction that reserves, current account surpluses and fiscal reforms are durable.

Moody’s has said a ratings upgrade could follow if external buffers are sustained and revenue reforms raise government receipts.