Moody’s, a US-based rating agency, has upgraded Nigeria’s sovereign credit rating from Caa1 to B3.
Gatekeepers News reports that this reflects substantial progress in the country’s fiscal discipline and external financial position.
In a statement released, Moody’s credited the improvement to recent adjustments in Nigeria’s foreign exchange management framework, which it said have improved the country’s balance of payments and strengthened foreign currency reserves held by the Central Bank of Nigeria (CBN).
Additionally, Moody’s revised Nigeria’s economic outlook from positive to stable, signaling that while economic gains are expected to persist, their pace may slow, especially if oil prices experience a downturn.
It added, “ The stable outlook reflects our expectations that external and fiscal improvements will decelerate but will not reverse entirely.”
One of the reasons for the improved rating is Nigeria’s progress in mitigating inflationary risks. While past policy changes led to inflationary pressures, recent economic strategies have helped stabilise borrowing costs and rising prices.
