S&P upgrades Nigeria’s credit rating to ‘B’, cites economic reforms, FX gains

S&P upgrades Nigeria’s credit rating to ‘B’, cites economic reforms, FX gains

The Federal Government has welcomed the decision by S&P Global Ratings to upgrade Nigeria’s sovereign credit rating from ‘B-’ to ‘B’ with a Stable Outlook, describing it as a strong indication of growing global confidence in the country’s economic reforms.

According to the government, the latest upgrade follows similar positive assessments by Fitch Ratings and Moody’s Ratings in 2025, further affirming Nigeria’s improving economic outlook and reform trajectory under the administration of President Bola Ahmed Tinubu

S&P cited improvements in Nigeria’s external position, stronger balance of payments, increased oil production, expanding domestic refining capacity, and continued foreign exchange market reforms as key factors behind the upgrade.

The government also noted that the rating agency recognised ongoing fiscal reforms aimed at increasing revenue generation, improving transparency, and strengthening debt sustainability.

It added that Nigeria’s debt-to-revenue ratio has improved significantly since 2023 and is expected to decline further.

The Federal Government said the positive ratings send a strong signal to investors, development partners, and the international business community that Nigeria is restoring macroeconomic stability and credibility.

It reiterated its commitment to prudent fiscal management, market-driven economic policies, and the removal of inefficient fuel subsidies, which it said previously caused fiscal distortions and weakened foreign exchange liquidity.

While acknowledging the positive development, the government said efforts would continue toward addressing inflation, improving food security, creating jobs, and ensuring inclusive economic growth for Nigerians.

Source: X | taiwooyedele