Moody’s Investors Service has upgraded Nigeria’s long-term foreign-currency and local-currency issuer ratings from Caa1 to B3, with a stable outlook, citing decisive economic reforms under President Bola Ahmed Tinubu’s administration. This marks the second upgrade by the rating agency since December 2023 and follows a similar action by Fitch Ratings, which recently raised Nigeria’s rating to ‘B’ from ‘B-’.
According to Moody’s, the upgrade reflects the Nigerian government’s sustained efforts to correct macroeconomic imbalances, enhance fiscal transparency, and restructure the economy. Key drivers behind the rating improvement include reforms in tax administration, a transition to a more flexible exchange rate regime, and policies aimed at rebuilding external reserves.
“This positive outlook reflects our administration’s determination and the tremendous work being carried out across various ministries, departments, and agencies — including our monetary policy authorities at the Central Bank of Nigeria — to stabilize the economy, attract investment, and ensure inclusive and sustainable growth for all Nigerians,” said Wale Edun, Minister of Finance and Coordinating Minister of the Economy.
The Federal Ministry of Finance noted that the upgrade affirms growing investor confidence in Nigeria’s reform programme, particularly in areas of revenue mobilisation, public financial management, and foreign exchange policy.
Since taking office in May 2023, President Tinubu’s government has pursued a reformist economic agenda — removing costly fuel subsidies, floating the naira, and ramping up infrastructure financing efforts in collaboration with the private sector.
The latest credit rating boost is expected to improve Nigeria’s access to international capital markets, reduce borrowing costs, and support ongoing efforts to attract foreign direct investment. The Ministry of Finance, in collaboration with the Central Bank of Nigeria, reaffirmed its commitment to sound macroeconomic management, debt sustainability, and building a more resilient, inclusive economy.