Moody’s Ratings has revised Nigeria’s economic outlook from “stable” to “positive,” citing the country’s improved resilience to external shocks, rising foreign exchange reserves and stronger-than-expected economic growth.

The ratings agency, in its latest assessment released on Friday, retained Nigeria’s sovereign credit rating at B3, saying the rating continues to reflect fiscal pressures arising from the country’s limited revenue-generating capacity and weak debt affordability, despite its moderate debt burden.

Moody’s said Nigeria had benefited from higher crude oil prices amid the ongoing conflict in the Middle East, as well as increased exports of refined petroleum products.

These developments, according to the agency, have helped strengthen Nigeria’s current account position and boost its capacity to withstand external economic pressures.

Moody’s also projected that Nigeria’s current account surplus would remain sizeable even if global oil prices decline significantly.

The outlook revision comes as Nigeria records improvements in some key macroeconomic indicators following a series of economic reforms by the Federal Government and the Central Bank of Nigeria.

The World Bank has projected that Nigeria’s economy will expand by about 4.2 per cent in 2026, noting that stronger oil revenues, fiscal discipline and tight monetary policy could further improve macroeconomic stability and help contain inflation.

However, Moody’s cautioned that Nigeria continues to face significant fiscal challenges, particularly its limited ability to generate government revenue and the high cost of servicing its debt.

The latest assessment follows a series of improved ratings actions by other international agencies.

In May, S&P Global Ratings upgraded Nigeria’s sovereign rating from B- to B, citing sustained structural reforms and improving creditworthiness.

Similarly, Fitch Ratings affirmed Nigeria’s rating at B in April, maintaining a stable outlook.

The latest Moody’s decision signals growing confidence in Nigeria’s economic reforms and external position, although persistent fiscal pressures and weak debt affordability remain major risks to the country’s credit profile.