The Federal Government of Nigeria has underscored the importance of increasing domestic revenue as a vital step towards achieving an investment-grade sovereign credit rating. This declaration follows Moody’s Ratings' recent revision of Nigeria’s sovereign outlook from stable to positive, while maintaining its B3 rating.

Finance Minister Taiwo Oyedele stated that the government is committed to enhancing revenue collection, improving public spending efficiency, and ensuring debt affordability. He highlighted that these efforts are not merely aimed at obtaining a favorable credit rating but are essential for addressing the structural weaknesses that have historically kept Nigeria's cost of capital high.

“Our medium-term ambition is to place Nigeria firmly on the path to investment grade,” Oyedele remarked in a statement released by the Federal Ministry of Finance. He emphasized that sustaining improvements in the external sector and accelerating domestic revenue mobilization are crucial for the country’s economic trajectory.

The Finance Ministry has outlined that reforms such as the removal of the fuel subsidy, foreign exchange reforms, and tax system changes have contributed positively to the economy. These measures have reportedly led to enhancements in external reserves, a more resilient external position, moderated inflation, and improved monetary policy transmission.

The government’s revenue strategy will remain a cornerstone of its reform agenda, which also includes fiscal discipline, effective debt management, and a market-driven foreign exchange regime. Oyedele pointed out that these structural reforms are designed to bolster non-oil economic growth and enhance the economy's capacity to generate revenue.

Moody’s has indicated that further improvements in Nigeria’s external position or a sustainable increase in government revenue resulting from ongoing reforms could pave the way for a future rating upgrade. The government is therefore prioritizing these areas to enhance Nigeria’s creditworthiness, reduce borrowing costs, and attract increased private investment as it strives towards achieving an investment-grade status.