FG SAYS MORE REVENUE NEEDED FOR INVESTMENT-GRADE RATING

The Federal Government has said sustained growth in Nigeria’s domestic revenue is critical to the country’s efforts to secure an investment-grade sovereign credit rating.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the government would focus on increasing revenue, improving public spending and strengthening debt management as part of its medium-term economic strategy.

His comments followed Moody’s decision to change Nigeria’s sovereign outlook from stable to positive while retaining the country’s B3 rating.

Oyedele said the government’s goal was not simply to secure a better credit rating but to address structural weaknesses that have contributed to Nigeria’s high cost of capital.

He said stronger domestic revenue mobilisation, improved expenditure management and continued reforms in the foreign exchange and tax systems would help strengthen the economy and attract more private investment.

According to him, recent reforms have contributed to improvements in Nigeria’s external position, foreign exchange reserves and inflation outlook.

The minister said the government would continue to pursue fiscal reforms aimed at making the economy more resilient while creating conditions that could lower borrowing costs and encourage investment.

Moody’s positive outlook is seen as a sign of improving investor confidence, although the agency maintained concerns about Nigeria’s limited revenue-generating capacity and debt affordability.