Moody’s changes Nigeria outlook to positive, affirms B3 rating

On 29 August 2026 Moody’s revised Nigeria’s sovereign credit outlook to positive from stable while affirming the long‑term foreign‑currency rating at B3, citing stronger foreign‑exchange reserves and better‑than‑expected economic growth as the basis for improved external resilience.

The outlook change signals a greater probability of a future upgrade if higher reserves and stronger growth persist, which could gradually reduce investor risk premia on Nigerian Eurobonds. However Moody’s kept the B3 rating, reflecting ongoing fiscal and debt‑affordability constraints; therefore any meaningful spread compression will depend on sustained external buffer improvements and credible fiscal adjustment. This outcome affects USD sovereign debt issuance conditions and investor sentiment toward Nigerian corporate bonds tied to external funding.

Watch for Moody’s next formal rating action or commentary and Nigeria’s quarterly reserve and fiscal updates (next fiscal data releases).