The Federal Government has welcomed Moody’s Ratings’ decision to revise Nigeria’s sovereign credit outlook from ‘stable’ to ‘positive’, describing the move as external validation of the Tinubu administration’s macroeconomic and fiscal reforms.

Moody’s announced on Friday, August 28, that it had affirmed Nigeria’s long-term foreign and local currency issuer ratings at B3 while revising the country’s outlook to positive. The agency cited improvements in Nigeria’s external position, foreign exchange market, reserves and monetary policy transmission as key factors behind the decision.

The Federal Ministry of Finance disclosed the development in a statement issued on Saturday, August 29, signed by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele.

“The revision of Nigeria’s outlook to positive by Moody’s is a significant vote of confidence in the ongoing reforms being implemented by President Bola Tinubu’s administration,” Oyedele said. “It reflects the positive trajectory of our economy and the effectiveness of measures taken to stabilise the macroeconomic environment, improve fiscal sustainability and restore investor confidence.”

The rating action comes after several years of economic reforms by the Federal Government, including the removal of the fuel subsidy, exchange-rate unification and tax reforms. The government has also been implementing measures to improve revenue mobilisation, enhance fiscal transparency and strengthen institutions.

Oyedele noted that the positive outlook also acknowledges the improved coordination between fiscal and monetary authorities, which has contributed to exchange rate stability and lower inflation.

“Nigeria is on a path to sustainable growth and development, and this outlook revision reinforces our commitment to implementing the necessary reforms to create a more resilient and prosperous economy,” Oyedele added.

The government said it remains focused on consolidating these gains through continued implementation of its Fiscal Responsibility, Economic Stabilisation and Tax Reforms agenda. Moody’s said the positive outlook reflects its expectation that Nigeria’s credit profile will continue to strengthen over the medium term.