FG eyes investment-grade rating, says revenue mobilisation key to Moody’s upgrade

The federal government of Nigeria is aiming for an investment-grade status following Moody's Ratings' revision of the country's outlook to "positive" from "stable". According to Moody's, this change is due to improvements in Nigeria's external position and stronger-than-expected economic growth. The country's external position has strengthened, with higher reserves and an improved current account balance providing greater protection against potential shocks, as reported by Nairametrics.

Moody's affirmed Nigeria's long-term foreign-currency rating at B3, citing continued fiscal pressures from the country's limited revenue-generating capacity and weak debt affordability. However, the agency noted that if sustained, Nigeria's gains in external resilience and economic performance could improve its credit profile. The positive outlook signals that Nigeria's credit profile could improve if these gains are sustained.

The government believes that revenue mobilisation is key to achieving an investment-grade rating. Moody's expects gradually higher oil production to support economic growth in 2026 and 2027, which could, over time, support a gradual increase in government revenue.

Brief written by urgent.news from TheCable, Nairametrics, Punch Nigeria, Punch — 4 reports on this story. Machine-written — may contain errors; check the original before relying on it.