Moody's positive outlook validates Tinubu's reforms, FG says

Nigeria's Federal Government has hailed an upgrade in the country's sovereign credit outlook by Moody's Ratings as a significant endorsement of its economic policies. The international rating agency revised the outlook from stable to positive, a move the government views as external validation for reforms initiated by President Bola Tinubu's administration.

Finance Minister Taiwo Oyedele highlighted that the assessment reflects the impact of key reforms, such as the removal of a costly fuel subsidy, unification of the exchange rate, and significant tax overhauls. He stated these measures are restoring macroeconomic stability, evidenced by stronger foreign reserves, a more resilient external position, moderating inflation, and improved monetary policy transmission.

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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 government's medium-term goal, Oyedele explained, is to steer Nigeria toward investment-grade status. However, he stressed that achieving this requires sustained progress in the country's external position, domestic revenue mobilization, spending efficiency, and debt affordability. The aim is not merely a better rating but to create conditions that lower the cost of capital, attract private investment, and ultimately enhance national prosperity.

Moody's decision was influenced by Nigeria's stronger external position, a rise in foreign exchange reserves to $53.30 billion as of August 26, and a more effective foreign exchange market and monetary policy transmission. The agency also anticipates stronger economic growth, projecting a 4% real GDP growth in 2025, with the current account surplus expected to widen.

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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.