Moody’s Ratings has changed Nigeria’s credit outlook from stable to positive while affirming the country’s B3 long-term foreign and local currency issuer ratings.

The agency said the positive outlook reflected improvements in Nigeria’s external position and stronger-than-expected economic growth, which, if sustained, would strengthen the country’s capacity to absorb external shocks.

It said the developments could also improve economic resilience and support a gradual increase in government revenue over time.

Moody’s said Nigeria’s external position had strengthened significantly over the past year, with the current account surplus exceeding its previous expectations.

The agency forecast Nigeria’s current account surplus to widen to about 6.1 per cent of Gross Domestic Product in 2026 before narrowing to 4.1 per cent in 2027.

It attributed the improved external position to sizeable current account surpluses, increased foreign exchange reserves, improved foreign exchange market functioning and more effective monetary policy transmission.

Moody’s also said gradually higher oil production was expected to support economic growth in 2026 and 2027.

Despite the improved outlook, the agency maintained Nigeria’s B3 rating, noting continued fiscal pressures, limited government revenue generation and weak debt affordability.

The rating agency said sustained improvements in Nigeria’s economic and external position could support further strengthening of the country’s credit profile.