S&P Upgrades Nigeria’s Credit Rating to ‘B’ on Reforms
By Patience Ikpeme
Nigeria’s fiscal reforms have received a significant boost following a sovereign credit rating upgrade by S&P Global Ratings, which moved the country from ‘B-’ to ‘B’ while assigning a Stable Outlook.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, announced the development on Saturday, framing the upgrade as a clear validation of the administration’s current economic direction.
According to the federal government, the revision reflects an accelerating turnaround in the country’s financial indicators over the past year. “This latest upgrade by S&P follows similar positive rating actions in 2025 by Fitch Ratings and Moody’s Ratings,” Oyedele said. “It further reinforces growing international confidence in Nigeria’s economic reform trajectory, policy consistency, and medium-term growth prospects.”
The minister noted that the collective evaluations from these independent global agencies prove that the challenging fiscal choices made under President Bola Ahmed Tinubu are delivering tangible outcomes and establishing a more resilient framework for the domestic economy.
In revised documentation, S&P pointed to structural turnarounds in Nigeria’s balance of payments and an strengthening of its external position. The agency’s upward revision was driven by rising domestic oil production, a expanding capacity for local refining and exports, and the ongoing deregulation of the foreign exchange market.
The rating agency also acknowledged domestic efforts to widen the tax base, boost non-oil revenue collection, and ensure greater clarity in public accounting. Government data shows that Nigeria’s debt-to-revenue ratio has turned a corner since 2023, with projections indicating further moderation as these policies mature.
Oyedele stated that the sequential endorsements from major international agencies will reshape how global markets view Nigerian credit. “Upgrades by Fitch, Moody’s, and now S&P send a strong signal to global investors, development partners, financial markets, and the international business community that Nigeria is regaining macroeconomic credibility and restoring confidence in the management of its economy,” the minister said.
Defending the administration’s long-term strategy, Oyedele stated that the government would not compromise on key structural adjustments, particularly regarding historical liabilities.
“We have maintained our position against the reintroduction of inefficient fuel subsidies which historically created significant fiscal distortions, incentivised smuggling, weakened foreign exchange liquidity, and diverted scarce public resources away from critical national priorities,” he said.
The minister added that the government remains devoted to fostering a market-driven economy rooted in fair competition and strong regulatory oversight, pledging to protect private capital and maintain a predictable environment for commerce.
To maintain the current momentum, Oyedele stated that the administration across all tiers of government will balance strict policy execution with public welfare. “The Federal, States and Local Governments will continue to implement reforms with discipline, pragmatism, and compassion while maintaining close engagement with citizens and all stakeholders,” Oyedele said.
However, the minister acknowledged that institutional rating improvements have yet to fully ease the immediate cost-of-living challenges across the country. “While these positive ratings developments are encouraging, we recognise that the work ahead remains substantial,” Oyedele said. “We are focused on addressing inflationary pressures, improving food security, expanding decent job opportunities, and ensuring that economic growth translates into meaningful and inclusive prosperity for all Nigerians.”
The administration expressed its gratitude to citizens for their patience during this transition, noting that the favorable shift in global ratings will ultimately lower borrowing costs and position the country as a primary destination for foreign direct investment.
