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Moody’s Upgraded Nigeria’s Credit rating from “Caa1” to “B3”, citing significant improvements in the country’s external and fiscal positions.

According to its recent statement, "The recent overhaul of Nigeria's foreign exchange management framework ... has markedly improved the balance of payments and bolstered the CBN's (Central Bank of Nigeria) foreign exchange reserves,"

The ratings agency noted that inflationary risks in Nigeria, driven by policy shifts, have diminished. “Inflation and domestic borrowing costs are showing nascent signs of easing, bolstering confidence in the stability of these policy changes,” the statement added.

Speaking further, Moody’s believed that the stable outlook reflects the expectation that external and fiscal improvements will decelerate but not reverse entirely.

The agency revised Nigeria's outlook to "stable" from "positive", as it expects recent progress on external and fiscal fronts to continue, though at a slower pace, if oil prices fall.

According to Moody's, inflationary risks in Nigeria, driven by policy shifts, have diminished. Inflation and domestic borrowing costs are showing nascent signs of easing, bolstering confidence in the stability of these policy changes.