Nigeria’s foreign exchange reserves have risen to $54.9 billion as of September 25, 2026, from $32 billion in mid-April 2024, as Fitch Ratings revised the country’s economic outlook from stable to positive while affirming its credit rating at ‘B’.
The Federal Ministry of Finance disclosed this in a statement issued on Saturday, October 10, 2026, attributing the improved outlook to ongoing economic reforms, declining inflation and stronger external reserves.
The ministry said the rating agency’s decision reflected increased confidence that the Federal Government would sustain its economic reform programme.
According to the statement, the growth in foreign reserves was supported by increased formalisation of foreign exchange transactions, strong portfolio inflows, higher export earnings and remittances.
Fitch also projected Nigeria’s real Gross Domestic Product (GDP) growth at 4.3 per cent in 2026, up from four per cent in 2025, with growth expected to remain above four per cent in 2027 and 2028.
The agency further forecast average inflation to moderate to 15.4 per cent in 2026, less than half its 2024 level.
The ministry noted that crude oil production had met Nigeria’s OPEC target of 1.5 million barrels per day since May 2026, while increased domestic refining was helping to reduce refined petroleum imports and foreign exchange demand.
On public finances, Fitch projected Nigeria’s general government debt to average 32 per cent of GDP between 2026 and 2028, below the 56 per cent median for countries with a ‘B’ rating.
The agency also recognised the country’s domestic debt market and ongoing bank recapitalisation exercise, noting that many banks had capital adequacy ratios above 20 per cent.
Commenting on the development, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the revised outlook validated the government’s economic reform efforts.
“Fitch’s Positive Outlook further validates the difficult but necessary reforms implemented under the leadership of President Bola Ahmed Tinubu,” Oyedele said.
He identified fuel subsidy removal, exchange rate unification and tax reforms as key measures introduced by the administration.
The minister added that the government aimed to improve Nigeria’s credit standing and create conditions for increased investment and employment.
“Our medium-term ambition is to place Nigeria firmly on the path to investment grade,” he stated.
“We are committed to this work, not for the rating itself, but because these reforms will lower Nigeria’s cost of capital, crowd in private investment and create decent jobs at scale,” Oyedele added.
However, the ministry acknowledged that challenges remained, including inflation above the levels of peer countries, low government revenue relative to the size of the economy and high debt-servicing costs.
To address these concerns, the government pledged to sustain foreign exchange reforms, improve revenue collection through the implementation of new tax laws, strengthen fiscal governance and promote economic diversification.
The ministry also disclosed that S&P Global Ratings upgraded Nigeria’s credit rating from ‘B-’ to ‘B’ in May 2026, while Moody’s Ratings revised its outlook to positive in August.
Additionally, FTSE Russell returned Nigeria to Frontier Market status effective September 21, 2026.
The ministry said the developments reflected a more favourable assessment of Nigeria’s economic reform trajectory.