Fitch upgrades Nigeria’s credit rating, cites President Tinubu’s economic reforms
Fitch upgrades Nigeria’s credit rating, cites President Tinubu’s economic reforms
Fitch Ratings, a leading global credit rating agency, has upgraded Nigeria’s credit rating to ‘B’, citing the Tinubu administration’s economic reforms as key drivers behind the improved outlook.
According to Fitch, the reforms have enhanced policy credibility and lowered short-term risks to macroeconomic stability.
The upgrade has been welcomed by economic stakeholders, who believe it will bolster investor confidence and contribute positively to Nigeria’s broader economic outlook.
Adding to the momentum, the World Bank announced a significant financial commitment to Nigeria, pledging over $16 billion across 28 ongoing projects.
The funding is primarily in the form of concessional loans provided through the International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD).
With Fitch moving Nigeria’s long-term foreign-currency Issuer Default Rating (IDR) from a negative to a stable outlook, the country is now better positioned to attract foreign investment, secure loans on more favorable terms, and strengthen investor sentiment.
“The upgrade reflects increased confidence in the government’s broad commitment to policy reforms implemented since its move to orthodox economic policies in June 2023, including exchange rate liberalisation, monetary policy tightening, and steps to end deficit monetisation and remove fuel subsidies,” Fitch said in a statement on Friday.
“These have improved policy coherence and credibility and reduced economic distortions and near-term risks to macroeconomic stability, enhancing resilience in the context of persistent domestic challenges and heightened external risks.”
Fitch anticipates that Nigeria’s current macroeconomic policies will help drive down inflation and maintain progress in stabilizing the foreign exchange (FX) market, although inflation is expected to remain significantly higher than that of comparable countries.
The agency also projects a gradual reduction in external vulnerabilities, driven by improved access to foreign currency within the domestic market. Additionally, it notes that ongoing reforms in the energy sector could support sustained current account surpluses.
It added: “Greater formalisation of FX activity including the Central Bank of Nigeria’s (CBN) recent introduction of an electronic FX matching platform and a new FX code to enhance transparency and efficiency, along with monetary policy tightening, has led to a greater rise in FX liquidity and general stability in the FX market after a 40% depreciation in 2024, closing the spread between the official and parallel exchange rates.
“Net official FX inflows through the CBN and autonomous sources rose by about 89% in 4Q24, compared to an 8% rise in 4Q23. We expect continued formalisation of FX activity to support the exchange rate, although we anticipate modest depreciation in the short term.
“The CBN has tightened monetary conditions through a combination of policy rate hikes to 27.5% (up 875bp since February 2024) and use of prudential and operational tools such as open market operations (at rates closely aligned to the MPR) to strengthen monetary policy transmission after years of financial repression.”
Nigeria’s oil refining sector is expected to gain momentum this year, according to projections by Fitch Ratings.
The agency forecasts a rise in crude oil production—excluding condensates—averaging 1.43 million barrels per day (mbpd) in 2025–2026, up from 1.34 mbpd in 2024. This increase is anticipated to result from enhanced onshore security and growing investments by indigenous oil firms.
Fitch also downplayed any potential negative impact on Nigeria from recently imposed U.S. tariffs, noting that oil-related exports—Nigeria’s primary export to the U.S.—are not affected.
Nearly a year ago, Fitch upgraded Nigeria’s credit outlook from stable to positive, citing the government’s commitment to restoring economic balance.
While the current “B” rating reflects progress, it still categorizes Nigeria’s credit status as “highly speculative” and below investment grade.
President Bola Tinubu’s sweeping economic reforms—most notably the removal of fuel subsidies and the liberalization of the naira exchange rate—have been central to this shift in perception.
In a further boost to economic optimism, the Central Bank of Nigeria (CBN) announced a Balance of Payments (BOP) surplus of $6.83 billion for the 2024 fiscal year.
This contrasts sharply with the deficits recorded in the previous two years: $3.34 billion in 2023 and $3.32 billion in 2022.
The CBN attributed the turnaround to wide-ranging policy reforms, stronger trade performance, and revived investor confidence.
Meanwhile, U.S. financial powerhouse J.P. Morgan is reported to have applied for a merchant banking license from the CBN, with plans to upgrade its Lagos representative office into a full-service branch.
The expansion would enable the firm to provide dollar-denominated loans to large Nigerian corporations, alongside its current advisory and asset management offerings.
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JUST IN; Oyo Governor, Makinde names Olubadan as Chairman Oyo Council of Obas
JUST IN; Oyo Governor, Makinde names Olubadan as Chairman Oyo Council of Obas
Oyo State Governor, Seyi Makinde, has inaugurated the Oyo State Council of Obas and Chiefs, declaring that the Olubadan of Ibadan, Oba Rashidi Ladoja, will be heading the council for a period of 2 years.
The declaration follows the passing of the Oyo State Council of Obas and Chiefs (Further Amendments) Bill, 2025, by the state House of Assembly, and the signing of the same into law by the governor.
Recall that the lawmakers had amended Clause 5 of Section 28 of the Chieftaincy Law to make the Council chairmanship rotational among the Alaafin of Oyo, the Soun of Ogbomoso, and the Olubadan of Ibadanland.
While inaugurating the Council, Governor Makinde said he had consulted with the trio of the Alaafin, the Olubadan and the Soun, with the three of them reaching a consensus that the chairmanship should start with the Olubadan of Ibadanland, His Imperial Majesty Oba Rashidi Ladoja.
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NPF committed to community policing, says IGP Egbetokun
NPF committed to community policing, says IGP Egbetokun
The Inspector General of Police (I-GP), Dr Kayode Egbetokun, has assured that the police remained committed to community policing to ensure that criminals were drastically reduced in the country.
The I-GP, who was represented by the Assistant Inspector of Police ( AIG) Zone 17, Dr Ajani Musibau, stated this at the Police Community Relations Committee ( PCRC) National Leadership Training and Conference on Thursday in Akure.
The theme of the conference is: “Inclusivity and Diversity: the New Leadership Paradigm.”
He said that security could not be achieved by only the police, but with the support from the community.
The I-GP stated that security was a joint work and responsibility of all, commending the current leadership of the Nigeria Police for a paradigm shift towards modern policing.
Also, the Commissioner of Police in Ondo State, Mr Adebowale Lawal, said that bandits could not infiltrate the state due to community policing strategy embraced by the command.
He explained that bandits would have infiltrated the state through Kogi and Edo, but intelligence reports from members of PCRC had been a great help to the police command.
According to him, the support and logistics received from the Inspector General of Police, Dr Kayode Egbetokun and Gov. Lucky Aiyedatiwa had also motivated police personnel to work earnestly.
He said that effective community policing was a sure way to curb activities of criminals, and implored members of the public not to relent in their efforts to provide police and other security agencies with useful information.
Lawal also commended other conventional security agencies, forest guards and vigilantes for their support to the police in fighting bandits
In his remarks, the National Chairman of PCRC, Alhaji Ibrahim Mogaji said that the conference was to strengthen leaders of PCRC in the South-West zone and encourage them to redouble their efforts and support in fighting crimes.
According to Mogaji, the occasion also enabled the association to appreciate Gov. Aiyedatiwa, I-GP, the AIG Zone 17 and the state Commissioner of Police.
He advised the participants to moblise other members of PCRC and orientate them on their roles to continue to fight crime in the country.
The PCRC national chairman asked Nigerians to respect the dignity of police and to be civil when interacting with them.
Mogaji said that the leadership training would be replicated in other geo-political zones of the country.
Also, Aiyedatiwa, represented by his Senior Special Assistant on Security, Mr Gbenga Atiba, commended the PCRC , AIG Zone 17, and the Commissioner of Police for their unrelenting efforts to guarantee peace across the state.
Aiyedatiwa promised that the state government would give PCRC attention and continue to support police and other security agencies with appropriate logistics that would make policing more effective.
A guest lecturer, Comrade Yinka Folarin asked members of the public to give respect and dignity to members of the police, saying that they also had rights that must be respected.
The News Agency of Nigeria (NAN) reports that PCRC honoured Gov. Aiyedatiwa, AIG Zone 17 and the Commissioner of Police with awards. (NAN)
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Increase salary, welfare packages for Police other security personnel – FG told
Increase salary, welfare packages for Police other security personnel – FG told
Peoples Democratic Party (PDP) has called for improved welfare packages for armed forces personnel and all members of the security and intelligence community to aid their effectiveness and efficiency.
National Chairman of PDP, Tanimu Turaki, made the call in a statement in Abuja on Thursday to mark the 2026 Armed Forces Celebration and Remembrance Day.
Turaki also urged the Federal Government to adequately fund security agencies to effectively neutralise those he described as agents of insecurity, and restore peace to the country.
He expressed PDP’s condolences to the families of members of the armed forces who died in active service while executing their mandate of protecting Nigeria’s territorial integrity and sovereignty.
“On a day like this, we acknowledge that they paid the supreme price for the continuous existence of our country.
“We advise all actors, whether state or non-state, not to engage in actions capable of destabilising the country.
“In honour of those who have died to keep our country safe, we pray that their deaths may not be in vain and their labours not forgotten,” Turaki said.(NAN)
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