Aduragbemi Omiyale
By Aduragbemi Omiyale
Moody’s outlook on Nigeria has been upgraded from stable to positive after the federal government implemented a few economic reforms.
In a statement on Friday, the rating agency said the decisions to remove the costly petrol subsidies, devaluation of the Naira and the unification of the foreign exchange (FX) market were good for the economy.
When Mr Bola Tinubu assumed office in May 2023, he announced an end to the payment of subsidies on premium motor spirit (PMS).
A month later, the Central Bank of Nigeria (CBN) announced the unification of the forex market, while the Naira was devalued from over N400/$1 to over N700/$1.
These economic reforms were applauded by global lenders, including the International Monetary Fund (IMF) and the World Bank, though citizens of the country are feeling the negative effects of these actions.
However, the government has assured them things would get better, stressing that the current pains were like a pregnant woman, who must undergo such to bring out a bundle of joy after childbirth.
Moody’s, in the release, noted that, “These policy changes, and those potentially to come, have raised the prospects of a fiscal and external improvement in the country’s credit profile,” while affirming Nigeria’s “Caa1” long-term foreign currency and local currency issuer ratings.
President Tinubu, who promised to resolve the FX crisis threatening the country, is looking outside the country to attract billions of Dollars.
Since he moved to Abuja to pilot the affairs of the country, a few multinationals have announced their exit from Nigeria, attributing this to a tough operating environment and forex liquidity squeeze.
Some Nigerians have had to live from hand to mouth because of the high cost of living triggered by red-hot inflation and hikes in the prices of goods and services.
However, government officials and politicians, including Mr Tinubu, have been criticised for living in affluence while asking citizens to tighten their belts and endure pains.
