By Matthew Denis
The Federal Ministry of Finance has welcomed Moody’s Investors Service’s decision to upgrade Nigeria’s issuer ratings from Caa1 to B3, with a stable outlook, attributing the positive revision to marked improvements in Nigeria’s external and fiscal positions.
The development was announced in a statement released on Sunday and signed by Mohammed Manga, Director of Information and Public Relations at the ministry.
According to the statement, the upgrade reflects growing confidence, both locally and internationally, in the government’s economic reform agenda and the progress made under the administration of President Bola Ahmed Tinubu. It comes shortly after Fitch Ratings also improved Nigeria’s credit rating, raising it from ‘B-’ to ‘B’, with a stable outlook.
This is the second positive rating decision by Moody’s since President Tinubu assumed office. In December 2023, the agency revised Nigeria’s outlook from Caa1 Stable to Caa1 Positive.
Moody’s attributed its latest decision to the government’s sustained efforts to address macroeconomic imbalances, improve fiscal discipline, and drive structural reforms. Among the reforms cited were tax policy enhancements and the transition to a more flexible, market-driven foreign exchange regime, which Moody’s said has significantly improved Nigeria’s external reserves.
Reacting to the development, Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, said, “We are encouraged by Moody’s recognition of our reform agenda.
“This positive outlook reflects our administration’s determination and the tremendous work being carried out across various Ministries, Departments, and Agencies (MDAs), including the monetary authorities at the Central Bank of Nigeria (CBN), to stabilise the economy, attract investment, and deliver inclusive and sustainable growth for all Nigerians.”
Since assuming office, the Tinubu administration has introduced a series of difficult but necessary measures to tackle structural economic issues. These have included efforts to boost revenue generation, strengthen public financial management, and foster strategic partnerships aimed at unlocking infrastructure finance and encouraging greater private sector involvement.
The Ministry noted that the sovereign credit upgrade comes at a critical time, as the government intensifies efforts to drive rapid, inclusive, and sustained economic growth, supported by both local and foreign investors.
Working alongside the Central Bank of Nigeria, the Finance Ministry reaffirmed its commitment to upholding macroeconomic stability, safeguarding debt sustainability, and maintaining prudent fiscal management.
The government, the statement added, will continue to work with both domestic and international stakeholders to strengthen investor confidence and improve Nigeria’s global credit reputation.