Moody's upgrades Nigeria's credit outlook to positive, validating Tinubu's economic reforms

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, stated that this assessment reflects the impact of reforms over the past three years, including fuel subsidy removal, exchange-rate reforms, and tax reforms. Oyedele noted that these reforms are restoring macroeconomic stability, citing stronger foreign reserves, a resilient external position, moderating inflation, and improved monetary policy transmission. The government's medium-term goal is to achieve investment-grade status for Nigeria, which requires sustained improvements in the country’s external position, domestic revenue mobilization, spending efficiency, and debt affordability.

Moody's attributed the improved outlook to Nigeria's stronger external position, rising foreign exchange reserves, a better functioning foreign exchange market, and more effective monetary policy. Nigeria's current account surplus is projected to widen to about 6.1 percent of GDP in 2026, and gross external reserves have risen to $53.30 billion as of August 26. Moody's also pointed to stronger-than-expected economic growth, with real GDP growth reaching four percent in 2025, and headline inflation moderating to 15.4 percent in July 2026.

The government plans to sustain these