Moody’s Upgrades Nigeria’s Credit Outlook to Positive

The Federal Government of Nigeria has welcomed Moody’s Ratings' decision to change the country's sovereign credit outlook from stable to positive, viewing it as an external validation of the economic reforms initiated by President Bola Tinubu's administration. Taiwo Oyedele, the Minister of Finance and Coordinating Minister of the Economy, stated that this assessment reflects the government's efforts over the past three years, including the removal of the fuel subsidy, exchange-rate reforms, and tax reforms.

Oyedele emphasized that these reforms are aimed at restoring macroeconomic stability, evidenced by stronger foreign reserves, a resilient external position, moderating inflation, and improved monetary policy transmission. He noted that the government's medium-term goal is to achieve investment-grade status for Nigeria, which requires ongoing improvements in the country's external position, domestic revenue mobilization, spending efficiency, and debt affordability.

Moody’s affirmed Nigeria’s long-term foreign and local currency issuer ratings at B3, citing stronger economic growth and a projected current account surplus of about 6.1% of GDP by 2026.