Moody's Upgrades Nigeria Outlook as Market Value Surges

The Nigerian equities market experienced a N1.38 trillion surge in capitalization following a series of positive economic indicators and rating updates. Moody's Ratings upgraded Nigeria's economic outlook from stable to positive on August 28, 2026, citing robust current account surpluses, a stronger external position, and economic growth that exceeded expectations. While the agency affirmed the country's B3 long-term foreign and local currency issuer ratings, it noted that fiscal pressures remain due to weak debt affordability and limited revenue-generating capacity.

This upgrade followed a confirmation from FTSE Russell on August 27 that Nigeria will return to Frontier Market classification effective September 21, 2026. The index provider stated it found no material issues with the country's T+1 settlement cycle.

Supporting these developments, the Central Bank of Nigeria reported that external reserves rose to $53.30 billion as of August 26, 2026, marking a $12.08 billion increase compared to the previous year.