FG: Moody’s Change of Nigeria’s Outlook to Positive a Reflection of Positive Impact of Reforms
The federal government has welcomed Moody’s Ratings’ decision to revise Nigeria’s outlook from stable to positive while retaining the country’s long-term foreign- and local-currency ratings at B3. The decision, announced
The Nigerian government has welcomed Moody’s Ratings’ decision to change Nigeria’s outlook from stable to positive. This change, while maintaining the country’s long-term foreign- and local-currency ratings at B3, indicates that Moody’s believes Nigeria’s current credit rating does not deteriorate and sees conditions that could support an upgrade if economic reforms continue to deliver results.
The Minister of Finance, Taiwo Oyedele, highlighted that the decision reflects the impact of the reforms implemented by the federal government over the past three years, including removing a costly fuel subsidy, unifying the exchange rate, and implementing tax reforms. These reforms have strengthened Nigeria's external position, leading to larger current account surpluses, rising foreign exchange reserves, and a more effective monetary policy framework.
An improved credit rating could potentially reduce the cost of accessing international financing and strengthen investor confidence.
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