₦airaland Forum

One of the global rating agencies, Fitch Ratings, has upgraded Nigeria’s Long-Term (LT) Foreign-Currency (FC) Issuer Default Rating (IDR) to ‘B’, from ‘B-‘.

It also assigned Nigeria a stable outlook.
According to its assessment on Nigeria obtained on its website yesterday, the upgrade of the West African country reflected 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.

“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 added.

It pointed out that the Stable Outlook reflects its expectation that Nigeria’s macroeconomic policy stance would sustain improvements in the functioning of the forex (FX) market and support the move to lower inflation, “although it will likely remain far higher than rating peers.”

“Additionally, we anticipate a continued reduction in external vulnerabilities through further easing of domestic FC supply constraints, while renewed energy sector reforms should help sustain current account surpluses.

“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 percent 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 percent in 4Q24, compared to an eight percent rise in 4Q23. We expect continued formalisation of FX activity to support the exchange rate, although we anticipate modest depreciation in the short term,” it added.

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.

“We project inflation, which reached 23.2 percent year-on-year in February 2025 under the recently rebased CPI, to average 22% in 2025 (‘B’ median 4.3%) and 20% in 2026. Fitch does not anticipate a premature easing of monetary policy that would undermine the benign effects of the policy adjustment, given high inflation,” it added

Putinofrussia:
Only literate people will understand this not until easiness trickles down to the masses.

helinues:
And only if those illiterate people who never heard credit score before won't call this fake, propaganda or perhaps Fitch have been bought

Just wait for it

coolcharm:
And you’ve proven to be a bigger illiterate for not being able to differentiate credit scores from credit ratings.

Let me help you.

Credit scores are three-digit numbers that tell lenders whether an individual is likely a responsible borrower.

Credit ratings, on the other hand, are letter ratings assigned to corporations or governments and are used by investors to determine their riskiness.

I hope you learn to brush yourself up before jumping into conversations that are beyond you.

TimeManager:
The problem with Nigerian wailers is the fact that they don't see beyond " what's the price of yam in the market?", they're more concerned about their stomach than the health of the economy. Forgetting that If you don't have an economy, you can't even have food security, growth and development. The food inflation we all complain about is not as a result of government policies but as a result of human factor - na bandits, terrorists and herdsmen factor dey cause food crisis and high food costs. And I know you would say, it is Government responsibility to fight insecurity. And I can tell you as much that there's no other President that has killed more bandits and terrorists than the current President. However, you can't wipe out insecurity of over 16years in less than two years. So, pockets of attacks will never undermine the fantastic efforts of the NSA and the Military. Unfortunately, Nigeria. wailers will rather exaggerate these pockets of violence than see the successes of the Military.
The economy is also on the pathway of recovery given where we were coming from, improved economic outlook has earned positive ratings from Fitch. Less debt to revenue ratio, net trade surplus, higher liquidity, stable currency, improved foreign reserves, gradual reduction in inflation, etc. But I will not be surprised if some people selling recharge cards or phone charger under the bridge start arguing with Fitch rating. I don't like talking too much.
God bless Nigeria.




Kiss the truth!

helinues:
One of the people I am talking about have arrived. Credit score and credit rating are used for different context.

What you score is what would be rated

The village lecturers dem

coolcharm:
Lol. Create your own happiness. Ignorance they say is bliss.

helinues:
You can as well create your own delusional. It's all allowed

coolcharm:
How can I create my own delusional? You must have meant “You can as well create your own delusion.”

Poor thing.

helinues:
Thank you as you just created one

ObosiLandlord:
Nah rating statistics we go chop?

helinues:
And only if those illiterate people who never heard credit score before won't call this fake, propaganda or perhaps Fitch have been bought

Just wait for it

coolcharm:
How can I create my own delusional? You must have meant “You can as well create your own delusion.”

Poor thing.

Putindbutt:
The rating is not meant for you, you're poor. It's meant for investors.

TimeManager:
The problem with Nigerian wailers is the fact that they don't see beyond " what's the price of yam in the market?", they're more concerned about their stomach than the health of the economy. Forgetting that If you don't have an economy, you can't even have food security, growth and development. The food inflation we all complain about is not as a result of government policies but as a result of human factor - na bandits, terrorists and herdsmen factor dey cause food crisis and high food costs. And I know you would say, it is Government responsibility to fight insecurity. And I can tell you as much that there's no other President that has killed more bandits and terrorists than the current President. However, you can't wipe out insecurity of over 16years in less than two years. So, pockets of attacks will never undermine the fantastic efforts of the NSA and the Military. Unfortunately, Nigeria. wailers will rather exaggerate these pockets of violence than see the successes of the Military.
The economy is also on the pathway of recovery given where we were coming from, improved economic outlook has earned positive ratings from Fitch. Less debt to revenue ratio, net trade surplus, higher liquidity, stable currency, improved foreign reserves, gradual reduction in inflation, etc. But I will not be surprised if some people selling recharge cards or phone charger under the bridge start arguing with Fitch rating. I don't like talking too much.
God bless Nigeria.




Kiss the truth!