Moody’s Investors Service has upgraded Nigeria’s long-term issuer ratings from Caa1 to B3, citing significant improvements in the country’s external and fiscal positions. The agency also changed Nigeria’s outlook from “positive” to “stable,” reflecting confidence that recent macroeconomic reforms will continue to yield results.
The Federal Ministry of Finance welcomed the upgrade, noting it reflects renewed investor confidence and recognition of the bold economic policies implemented by the administration of President Bola Ahmed Tinubu.
“This marks the second positive rating action by Moody’s under President Tinubu, following a previous upgrade in December 2023,” said Wale Edun, Minister of Finance and Coordinating Minister of the Economy. “It also follows a recent upgrade by Fitch Ratings and underscores the administration’s resolve to stabilize the economy and drive inclusive growth.”
According to Moody’s, reforms in Nigeria’s foreign exchange management have significantly improved the balance of payments, strengthened the Central Bank of Nigeria’s (CBN) FX reserves, and reduced inflationary pressures. The agency also noted easing borrowing costs and improving investor sentiment as signs of growing macroeconomic stability.
Meanwhile, data compiled by THISDAY revealed that the Nigerian Exchange Limited (NGX) delivered a massive N7.7 trillion gain to investors in the first five months of 2025. The market capitalization of listed equities surged from N62.76 trillion at the end of 2024 to N70.46 trillion by May 31, 2025 — a 12.3% increase.
The NGX All-Share Index also rose significantly, crossing the 110,000 basis points mark to close May at 111,742.01, up from 102,926.40 at the beginning of the year.
Analysts attributed the stock market rally to strong corporate earnings, monetary tightening policies by the CBN, improved investor sentiment, and a more stable foreign exchange regime under CBN Governor Dr. Olayemi Cardoso. Since assuming office, Cardoso has overseen the gradual clearance of FX backlogs and implemented reforms that have stabilized the naira.
The MD/CEO of Globalview Capital Ltd, Aruna Kebira, noted that the stock market showed “resilient and generally positive performance” despite volatility. He identified the banking sector recapitalization, early inflation moderation, and increased transaction volume as key drivers of the rally.
Similarly, Vice President of Highcap Securities, David Adonri, said improved macroeconomic fundamentals and strong earnings boosted market confidence. “The more stable FX environment supported consumer goods stocks and attracted renewed buying interest,” he said.
Looking ahead to June and the rest of Q2 2025, analysts predict sustained momentum with potential volatility. Investors are expected to monitor policy developments, macroeconomic data, and corporate earnings closely.