Oyedele hails Moody’s positive outlook on Nigeria, says reforms yielding results

By Onu Okorie

Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has described Moody’s Ratings’ decision to revise Nigeria’s sovereign credit outlook from stable to positive as an external validation of the economic reforms undertaken by the Federal Government over the past three years.
Oyedele said the reforms, including the removal of fuel subsidy, exchange-rate reforms and landmark tax reforms, were beginning to restore the fundamentals of macroeconomic stability.
“Moody’s positive outlook is an important external validation of the difficult but necessary reforms this administration has implemented, from removing a costly and inequitable fuel subsidy to unifying the exchange rate, and the landmark tax reforms,” the minister said.
He said the reforms had contributed to stronger foreign reserves, a more resilient external position, moderating inflation and improved monetary policy transmission.
The minister, however, said the Federal Government’s medium-term ambition was to place Nigeria firmly on the path towards investment-grade status.
According to him, achieving that objective would require sustained progress in strengthening the country’s external position, improving domestic revenue mobilisation, enhancing spending efficiency and ensuring greater debt affordability.
“Our medium-term ambition is to place Nigeria firmly on the path to investment grade. That will require us to sustain the external gains Moody’s has recognised, while making faster progress on domestic revenue mobilisation, spending efficiency, and debt affordability,” he said.
Oyedele stressed that the government was not seeking an improved sovereign credit rating merely as an end in itself but as a means of creating conditions that would lower Nigeria’s cost of capital, attract greater private investment and improve economic prosperity.
The minister’s reaction followed Moody’s decision to revise Nigeria’s sovereign credit outlook to positive while affirming the country’s long-term foreign and local currency issuer ratings at B3.
The Federal Ministry of Finance said the improved outlook reflected positive developments in key macroeconomic indicators.
According to the ministry, Nigeria’s current account surplus is projected to widen to about 6.1 per cent of Gross Domestic Product in 2026, while gross external reserves had risen to $53.30 billion as of August 26, based on Central Bank of Nigeria data.
Moody’s also cited stronger-than-expected economic growth, with Nigeria’s real GDP growth reaching four per cent in 2025, compared with an earlier projection of about three per cent.
Headline inflation has also moderated, declining to 15.4 per cent in July 2026 from 25.3 per cent recorded a year earlier, according to the ministry.
Oyedele said the government would sustain the reforms underpinning Nigeria’s improving credit profile, particularly efforts aimed at increasing domestic revenue and strengthening public debt management.
Other priority areas, according to the ministry, include maintaining a disciplined and transparent foreign exchange regime, strengthening fiscal discipline and implementing structural reforms to support non-oil growth and diversify government revenue.
The ministry added that Moody’s had indicated that Nigeria could secure a further rating upgrade if improvements in its external position were sustained or if ongoing revenue reforms resulted in a durable increase in government receipts.
The positive outlook is expected to strengthen confidence in Nigeria’s economic reform programme as the government intensifies efforts to stabilise the economy, improve fiscal sustainability and attract private capital.