Nigeria’s Minister of Finance, Taiwo Oyedele, has hailed the latest assessment of Nigeria’s economic outlook by Moody’s Ratings as a significant external endorsement of the Tinubu administration’s reform agenda.
Moody’s, one of the world’s leading credit rating agencies, on Friday upgraded Nigeria’s outlook from stable to positive, while affirming the country’s long-term foreign and local currency rating at B3.
Speaking on the development, Oyedele described the rating as “an affirmation that the difficult but necessary reforms we have embarked upon are beginning to yield credibility in the eyes of global markets.” He stressed that the recognition underscores the importance of sustaining the reform momentum.
Reform Trajectory and Global Endorsements
The Moody’s upgrade follows a series of positive signals from global rating institutions:
FTSE Russell reclassified Nigeria from “Unclassified” to “Frontier Market” status on August 27, 2026.
S&P Global Ratings raised Nigeria’s rating from B- to B in May.
Fitch Ratings maintained Nigeria’s B rating with a stable outlook.
Oyedele said these endorsements collectively validate the administration’s economic reforms, which include the removal of fuel subsidies, exchange rate unification, and landmark tax reforms.
“These decisions are restoring the fundamentals of macroeconomic stability: stronger reserves, a resilient external position, moderating inflation, and more credible policy transmission,” he noted.
Path to Investment Grade
The minister outlined the government’s medium-term ambition to move Nigeria into investment grade status, which would lower borrowing costs, attract private investment, and free up more revenue for infrastructure, health, and education.
“Our goal is not just the rating itself, but the underlying reforms that will reduce Nigeria’s cost of capital, crowd in private investment, and deliver shared prosperity for Nigerians,” Oyedele said.
Economic Indicators
Moody’s cited Nigeria’s stronger external position as a key driver of the improved outlook, pointing to:
Current account surpluses projected to reach 6.1% of GDP by 2026.
Rising foreign reserves, which climbed to $53.30 billion as of August 26, 2026.
A more transparent and functional foreign exchange market.
Improved monetary policy transmission by the Central Bank of Nigeria.
The agency also praised Nigeria’s economic growth, noting that real GDP expanded by 4% in 2025, outperforming earlier projections. Growth is expected to remain robust through 2027, supported by non-oil sectors and rising oil output. Inflation has also moderated, dropping to 15.4% in July 2026 from 25.3% a year earlier.
Sustaining the Gains
Oyedele emphasized that sustaining these gains will require faster progress on domestic revenue mobilization, spending efficiency, and debt affordability. He assured that the government remains committed to reforms in tax administration, debt management, fiscal discipline at state level, and diversification of the economy beyond oil.
Moody’s indicated that Nigeria’s rating could be raised further if the country consolidates its external position and achieves lasting improvements in revenue collection.
