Moody’s positive outlook validates Tinubu’s reforms – FG

The Federal Government has described Moody’s Ratings’ decision to revise Nigeria’s sovereign credit outlook from stable to positive as an external validation of the economic reforms implemented by the President Bola Tinubu administration.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, stated this in a press release posted on his X handle on Saturday.

Oyedele said the latest assessment by the international rating agency reflected the impact of reforms undertaken by the government over the past three years, including the removal of fuel subsidy, exchange-rate reforms and tax reforms.

“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 added that the reforms were restoring the fundamentals of macroeconomic stability, citing stronger foreign reserves, a resilient external position, moderating inflation and improved monetary policy transmission.

According to the minister, the government’s medium-term objective is to move Nigeria towards investment-grade status.

Oyedele, however, said achieving the target would require sustained improvements in the country’s external position, domestic revenue mobilisation, 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 recognised, while making faster progress on domestic revenue mobilisation, spending efficiency, and debt affordability,” he said.

He stressed that the government was not pursuing a better sovereign rating merely for its own sake, but to create conditions that would lower the country’s cost of capital, attract private investment and improve prosperity.

The minister’s reaction came after Moody’s revised Nigeria’s outlook to positive while affirming the country’s long-term foreign and local currency issuer ratings at B3.

The rating agency attributed the improved 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 had risen to $53.30bn as of August 26, according to Central Bank of Nigeria data.

Moody’s also pointed to stronger-than-expected economic growth, with real GDP growth reaching four per cent in 2025, against an earlier projection of about three per cent.

Headline inflation has also moderated, falling to 15.4 per cent in July 2026 from 25.3 per cent a year earlier, according to the ministry.

Oyedele said the government would sustain the reforms underpinning the improving credit profile, particularly efforts to increase domestic revenue and strengthen public debt management.

The ministry also listed the maintenance of a disciplined and transparent foreign exchange regime, fiscal discipline and structural reforms aimed at supporting non-oil growth and diversifying government revenue among its priorities.

The ministry noted 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 development is another positive assessment of Nigeria’s 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 that further work was required to strengthen public finances and reduce the cost of borrowing.