The sovereign credit of Nigeria was raised by Moody’s Ratings, citing the removal of oil subsidies, a more flexible exchange rate and improvements in its fiscal status.
The credit assessor upgraded Africa’s largest oil producer’s foreign currency debt to B3, six notches below investment grade, from Caa1. The outlook was changed to stable.
“We expect Nigeria’s recent progress on external and fiscal fronts to continue, though at a slower pace if oil prices fall,” Moody’s said Friday in a statement.
Since taking office in May 2023, President Bola Tinubu has instituted reforms to revive the nation’s economy and make it less vulnerable to global risks such as US trade policies.
The policies have boosted foreign reserves by 10% to $38.5 billion over the period, and since the central bank increased dollar supply in April — after an initial investor pullout because of US tariff plans — the naira has stabilized.
Follow the MoneyCentral Nigeria channel on WhatsApp: Click here!
