MOODY’S POSITIVE OUTLOOK SIGNALS PROGRESS ON TINUBU’S REFORMS, SAYS FG

The Federal Government has welcomed Moody’s Ratings’ decision to change Nigeria’s sovereign credit outlook from stable to positive, describing it as recognition of the economic reforms introduced by the President Bola Tinubu administration.

The rating agency retained Nigeria’s long-term foreign and local currency issuer ratings at B3 but upgraded the outlook to positive. Moody’s cited improvements in Nigeria’s external position, stronger foreign exchange reserves, better functioning of the foreign exchange market and improved monetary policy transmission.

Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the assessment provided external validation of reforms including the removal of fuel subsidies, exchange-rate reforms and changes to the tax system.

According to Oyedele, the government’s goal is to sustain the gains recorded so far and move Nigeria towards investment-grade status. He acknowledged that achieving this would require further progress in domestic revenue mobilisation, spending efficiency and debt affordability.

The minister said the government was focused on ensuring that the reforms would translate into lower borrowing costs, increased private investment and stronger economic growth.

Moody’s positive outlook, however, does not amount to an immediate rating upgrade. It indicates that the agency sees potential for an improved credit profile if Nigeria sustains its recent economic gains.