Global credit rating agency Moody’s Investors Service has upgraded Nigeria’s long-term issuer rating from Caa1 to B3, assigning a stable outlook.
The move is an indication of increased investor confidence in the country’s economic direction under the administration of President Bola Ahmed Tinubu.
Moody’s said the upgrade reflects improvements in Nigeria’s external and fiscal positions and acknowledged the government’s commitment to macroeconomic and structural reforms.
The latest development marks the second positive rating action by Moody’s since December 2023, when the agency adjusted Nigeria’s outlook from stable to positive.
It also comes shortly after Fitch Ratings raised Nigeria’s rating from ‘B-’ to ‘B’, citing similar economic progress.
Key reforms identified by Moody’s include tax system overhauls and the adoption of a more flexible, market-driven foreign exchange policy, which it said has significantly improved the country’s external reserves.
Reacting to the news, Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun said the upgrade is a vote of confidence in the administration’s reform agenda.
Director of Information and public relations, Muhammed Manga quoted Edun to have stated,
“We are encouraged by Moody’s recognition of our reform agenda,” Edun said.
“This positive outlook reflects our administration’s determination and the tremendous work being done across Ministries, Departments, and Agencies—including the Central Bank of Nigeria—to stabilize the economy, attract investment, and ensure inclusive growth.”
Since assuming office in 2023, President Tinubu’s administration has implemented wide-ranging reforms aimed at restoring macroeconomic stability. These include enhanced revenue mobilization, improved public financial management, and efforts to attract private capital through infrastructure partnerships and investment-friendly policies.
The Ministry of Finance noted that the improved rating is timely, as the government ramps up efforts to drive inclusive and sustainable economic growth.
Officials also reaffirmed their commitment to fiscal discipline, debt sustainability, and building investor trust.
The upgrade is expected to strengthen Nigeria’s position in global financial markets and may lower borrowing costs for the country in the medium term.
