Toba Owojaiye
Abuja, Nigeria
In a major boost to the Nigerian economy, global credit rating agency Moody’s Investors Service has upgraded Nigeria’s long-term foreign-currency issuer rating from Caa1 to B3 with a Stable Outlook, a move the Tinubu Administration describes as a “clear endorsement” of its economic reform agenda and prudent fiscal management.
Truth Live News gathered that the announcement, made on Friday, is the first upgrade by Moody’s since Nigeria’s rating was downgraded to junk status during the prolonged economic uncertainty of recent years. According to the agency, the upgrade reflects a “more resilient fiscal position, stronger external accounts, and a demonstrated commitment to macroeconomic and structural reforms.”
President Bola Ahmed Tinubu, in his reaction to the development, said the upgrade is not only a signal to global investors that Nigeria is on the path of recovery, but also a testament to the government’s commitment to responsible governance and inclusive economic 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,” President Tinubu said.
The upgrade follows a string of bold reforms undertaken by the Tinubu administration, including the removal of fuel subsidies, unification of the foreign exchange market, fiscal discipline, efforts to raise non-oil revenues, and measures to restore credibility to the Central Bank of Nigeria. These moves, while initially met with mixed reactions domestically due to their short-term social impact, have now earned Nigeria renewed international recognition.
Moody’s noted that the reforms have begun yielding tangible improvements in Nigeria’s macroeconomic stability, with rising investor interest, improving reserves position, and narrowing fiscal deficits. The agency also praised the administration’s willingness to adopt “market-oriented and transparent policy choices.”
For Nigeria, the implications of the rating upgrade are profound. Analysts expect that the new rating will significantly improve the country’s access to international capital markets, reduce borrowing costs, and help attract long-term foreign direct investments, key levers needed to support the administration’s agenda of economic diversification, job creation, and poverty reduction.
Beyond the immediate fiscal optics, government insiders view the development as a vital confidence-building milestone that could ripple into other sectors. The Tinubu administration has pledged to keep the reform momentum alive.
“Efforts will continue to broaden the tax base, deepen the digital economy, boost industrial productivity, and support the most vulnerable through well-targeted social protection programs,” the President noted.
This is not the first time the administration has cited global institutional feedback as validation of its economic policies. Just last quarter, the World Bank and IMF acknowledged improvements in Nigeria’s economic fundamentals, urging the country to sustain reforms and enhance revenue mobilisation.
Still, some observers remain cautiously optimistic. While the rating signals improved investor sentiment, the realities of domestic inflation, unemployment, and rising cost of living continue to test public confidence. The challenge, many agree, lies in translating macroeconomic gains into tangible outcomes for ordinary Nigerians.
As Nigeria inches toward its 2025 mid-term economic targets, the Moody’s upgrade is a welcome tailwind. It marks a turning point in the country’s post-pandemic recovery narrative and offers a rare alignment between international perception and national aspiration.
Whether this momentum will translate into sustained prosperity depends on the government’s ability to balance reform with resilience, and growth with social equity.