Nigeria’s Moody Upgrade To B3 Excites Tinubu

PRESIDENT Bola Tinubu has stated that Moody’s Investors Service’s recent upgrade of Nigeria’s long-term foreign-currency issuer rating from Caa1 to B3, with a Stable Outlook, is a welcome development, describing it as a significant vote of confidence in the country’s economic direction and ongoing reform agenda’.
Special Adviser on Media and Information Strategy, Mr. Bayo Onanuga, said in a statement, that reaffirmed his administration’s commitment to maintaining prudent economic management while promoting inclusive growth.
According to the statement: “This upgrade signals to global investors and partners that Nigeria is back on a path of responsibility, reform, and renewed credibility. It underscores our unwavering commitment to transparency, discipline, and prosperity for all Nigerians.
“This positive rating reinforces global confidence in Nigeria’s future and represents a milestone in the administration’s goal of restoring investor trust, unlocking economic potential, and securing long-term prosperity.
“The upgrade reflects growing international recognition of Nigeria’s progress in stabilising its macroeconomic environment, enhancing fiscal transparency, improving debt sustainability, and implementing market-oriented reforms under President Tinubu’s leadership.”
The Moody uograde came about two months after similar upgrade by Fitch Ratings from ‘B-’ to ‘B,’ also with a stable outlook, citing similar progress in macroeconomic indicators.
In December 2023, Moody’s revised Nigeria’s outlook from Caa1 Stable to Caa1 Positive, making the current upgrade to B3 the second positive action from the agency in less than a year.
This signifies a one-notch improvement in Nigeria’s creditworthiness. It still indicates a high risk of default, but no longer falls within the “very high” risk category, an indication that Nigeria is making progress in addressing vulnerabilities that have plagued its economy, including foreign exchange distortions, fiscal pressures and debt sustainability challenges.
On his part, Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, said the upgrade reflects the administration’s determination to achieve economic stability and sustainable growth, adding: “We are encouraged by Moody’s recognition of our reform agenda.
“This positive outlook reflects our administration’s determination and the tremendous work being carried out across various Ministries, Departments, and Agencies (MDAs), including our monetary policy authorities at the Central Bank of Nigeria, to stabilise the economy, attract investment and ensure inclusive and sustainable growth for all Nigerians.”
The Federal Ministry of Finance, in a statement, said the timing of the upgrade was significant, coming at a period when the government is focused on accelerating economic growth through increased private sector participation, noting that efforts were underway to improve infrastructure financing, deepen the financial sector and expand access to capital for productive activities.
It reiterated that government, in collaboration with the Central Bank of Nigeria (CBN), remains committed to preserving macroeconomic stability, managing public debt sustainably and maintaining sound fiscal practices, adding: “The government will continue to collaborate with both domestic and international partners to boost investor confidence and enhance Nigeria’s global credit standing.”