BY CHIKA OKEKE, Abuja
The Federal Government has validated Moody"s reversal of Nigeria's sovereign credit outlook from stable to positive, affirming the country's long-term foreign and local currency issuer ratings at B3.
This was even as the Federal Government linked the reversal to the tangible impact of macroeconomic and fiscal reform agenda over the past three years.
Moody is a global Rating Agency that provides financial research on bonds issued by commercial and the government entities.
The agency had on Friday, attributed the improved outlook to a markedly stronger external position, underpinned by sizeable current account surpluses, rising foreign exchange reserves, improved functioning of the foreign exchange market, and more effective transmission of monetary policy.
Also, that Nigeria's current account surplus is projected to widen to about 6.1 per cent of Gross Domestic Product ,GDP, in 2026, while gross external reserves have risen substantially over the past year, a build-up corroborated by Central Bank of Nigeria, CBN, data showing reserves climbing to $53.30 billion as of August 26, 2026.
Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele said that Moody's positive outlook is an important external validation of the difficult but necessary reforms the administration implemented, by removing a costly and inequitable fuel subsidy to unifying the exchange rate, and the landmark tax reforms.
He informed that Moody's decisions are restoring the fundamentals of macroeconomic stability like stronger reserves, a resilient external position, moderating inflation, and more credible policy transmission.
The agency also pointed to stronger-than-expected economic performance, with real GDP growth reaching four per cent in 2025 against earlier projections of about three per cent, and similar expansion anticipated through 2027, supported by non-oil sector activity and rising oil output.
While the Headline inflation fell to 15.4 per cent in July 2026 from 25.3 per cent a year earlier, the rating followed FTSE Russell's confirmation of Nigeria's reclassification from Unclassified to Frontier Market status on August 27, 2026, expected to take effect from the opening of trading on September 21.
This is in addition to S&P Global Ratings' upgrade of Nigeria to B from B- in May 2026, and Fitch's affirmation of Nigeria at B with a stable outlook.
Oyedele said: "Taken together, these actions reflect a converging and increasingly favourable assessment of Nigeria's reform trajectory among the major international rating agencies.
"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.
"We are committed to doing the work required to get there, not for the rating itself, but because the underlying reforms are what will lower Nigeria's cost of capital, crowd in private investment, and deliver shared prosperity for Nigerians."
Going forward, the government will focus on reforms that underpinned the country's improving credit profile such as deepening domestic revenue mobilisation through ongoing tax reform and administration improvements.
The Ministry reaffirmed its commitment to the strengthening public debt management and improving debt affordability metrics.
Oyedele promised to maintain fiscal discipline in coordination with the subnational governments; and advance structural reforms to support non-oil growth and diversify government revenue.
"With Moody's guidance, a further rating upgrade could follow if the recent improvement in Nigeria's external position is sustained, or if revenue reforms succeed in durably increasing government receipts, both of which remain central pillars of the administration's economic strategy," he added.
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