On May 31, 2025, Moody’s Ratings raised Nigeria’s credit rating from Caa1 to B3, recognizing substantial advancements in the nation’s fiscal and external financial health. The agency praised Nigeria’s revamped foreign exchange framework, which has bolstered Central Bank of Nigeria (CBN) reserves and enhanced balance of payments stability. At the exchange rate of N1,579/$1 as of June 2, 2025, this upgrade underscores Nigeria’s growing economic credibility, making it more attractive to international investors.
Moody’s shifted Nigeria’s economic outlook from positive to stable, projecting continued but slower fiscal and external gains, particularly if global oil prices weaken. The agency highlighted reduced inflationary pressures, with stabilized borrowing costs and controlled price growth, driven by policies such as foreign exchange liberalization and the elimination of fuel subsidies. The World Bank noted Nigeria’s strongest economic growth in nearly a decade in 2024, fueled by a robust Q4, though inflation remains a persistent hurdle.
This aligns with Fitch Ratings’ April 2025 decision to revise Nigeria’s outlook to stable from negative, crediting President Tinubu’s reforms, including stringent monetary policies and improved forex market transparency via a new trading platform and FX code. These steps reduced the official-parallel market exchange rate disparity following a 40% naira devaluation in 2024, strengthening economic confidence. Finance Minister Wale Edun hailed the upgrade as evidence of Tinubu’s dedication to sustainable progress. Posts on X, like those from @thecableng, express optimism about fiscal strides, while @MobilePunch flagged concerns over oil price risks and inflation.
