The Federal Government says Moody’s Ratings’ decision to revise Nigeria’s sovereign credit outlook from stable to positive validates the economic reforms implemented by the administration of President Bola Tinubu.
The international rating agency affirmed Nigeria’s long-term foreign and local currency issuer ratings at B3, citing improvements in the country’s external position, foreign exchange reserves, foreign exchange market and monetary policy transmission.
“Moody’s positive outlook is an important external validation of the difficult but necessary reforms this administration has implemented, from removing a costly and inequitable fuel subsidy to unifying the exchange rate, and the landmark tax reforms,” the minister said.
He said the reforms were helping to restore macroeconomic stability, citing stronger foreign reserves, a resilient external position, moderating inflation and improved monetary policy transmission.
According to Oyedele, the government’s medium-term objective is to put Nigeria on the path to investment-grade status.
He, however, said achieving the target would require sustained improvements in the country’s external position, domestic revenue mobilization, spending efficiency and debt affordability.
“Our medium-term ambition is to place Nigeria firmly on the path to investment grade. That will require us to sustain the external gains Moody’s has recognized, while making faster progress on domestic revenue mobilization, spending efficiency, and debt affordability,” he said.
Oyedele said the government was not seeking an improved sovereign rating for its own sake, but to create conditions that would lower the cost of capital, attract private investment and improve economic prosperity.
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Moody’s attributed the positive outlook to Nigeria’s stronger external position, rising foreign exchange reserves, improved functioning of the foreign exchange market and more effective transmission of monetary policy.
The Federal Ministry of Finance said Nigeria’s current account surplus was projected to widen to about 6.1 per cent of GDP in 2026, while gross external reserves stood at $53.30bn as of August 26, according to data from the Central Bank of Nigeria.
Moody’s also cited stronger-than-expected economic growth, with real GDP growth reaching four per cent in 2025, compared with its earlier projection of about three per cent.
Headline inflation also moderated to 15.4 per cent in July 2026, down from 25.3 per cent a year earlier, according to the ministry.
Oyedele said the government would sustain the reforms supporting the country’s improving credit profile, particularly measures aimed at increasing domestic revenue and strengthening public debt management.
The ministry listed maintaining a disciplined and transparent foreign exchange regime, fiscal discipline and structural reforms to support non-oil growth and diversify government revenue among its priorities.
It added that Moody’s had indicated that Nigeria could secure a further rating upgrade if the improvement in its external position was sustained or if revenue reforms resulted in a durable increase in government receipts.
The latest assessment adds to a series of positive evaluations of Nigeria’s economic reform programme by international financial institutions and rating agencies.
PUNCH Online had earlier reported that S&P Global Ratings upgraded Nigeria’s sovereign credit rating to B from B- in May 2026, citing improvements in the country’s external position and economic reforms.
The Federal Government said the latest assessments demonstrated growing confidence in the direction of the Nigerian economy, while acknowledging the need for further measures to strengthen public finances and reduce borrowing costs.
PUNCH
