In a major development for Nigeria’s economy, Moody’s Investors Service has upgraded the country’s long-term foreign-currency issuer rating from Caa1 to B3, now with a Stable Outlook. This update has been hailed by President Bola Ahmed Tinubu as a significant vote of confidence in Nigeria’s economic trajectory and ongoing reforms.

The upgrade reflects increasing international recognition of Nigeria’s advancements in stabilizing its macroeconomic environment, enhancing fiscal transparency, and improving debt sustainability. These improvements have been achieved through market-oriented reforms pursued by President Tinubu’s administration.

According to Moody’s, the upgrades were driven by “a more resilient fiscal position, stronger external accounts, and the government’s demonstrated commitment to macroeconomic and structural reforms.” Key initiatives under this reform agenda have included the unification of the foreign exchange market, the removal of harmful fuel subsidies, an increase in non-oil revenue, and efforts to restore credibility in monetary policy via the actions of the Central Bank of Nigeria.

Reacting to the positive news, President Tinubu expressed confidence in the administration’s ability to maintain responsible economic management while ensuring inclusive growth. “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,” he stated.

The upgrade is anticipated to enhance Nigeria’s access to international capital markets, lower borrowing costs, and attract foreign direct investment, further energizing the country’s economic revitalization efforts and job creation initiatives.

The Federal Government has pledged to sustain its reform momentum, focusing on broadening the tax base, deepening the digital economy, enhancing industrial productivity, and supporting vulnerable populations through targeted social protection programs.

“This positive rating reinforces global confidence in Nigeria’s future and represents a milestone in our goal of restoring investor trust, unlocking economic potential, and ensuring long-term prosperity,” President Tinubu added.

The upgrade from Moody’s positions Nigeria for better economic outcomes as the country navigates its path toward stability and growth, aiming to build a robust economic framework for the benefit of its citizens.