…Signals stronger economic outlook

Nigeria’s reform-driven economy has received another boost on the global stage as S&P Global Ratings upgraded the country’s sovereign credit rating from ‘B-’ to ‘B’, maintaining a Stable Outlook in a move widely seen as growing international approval of ongoing fiscal and structural reforms.

The Federal Government welcomed the development, describing it as further evidence that Nigeria’s economic policy direction is beginning to gain traction among global investors and rating institutions.

The upgrade follows earlier positive assessments from Fitch Ratings and Moody’s in 2025, placing Nigeria on a gradual path toward improved financial credibility.

According to S&P, the decision reflects notable improvements in Nigeria’s external position, including stronger balance of payments dynamics, rising oil output, and expanding domestic refining capacity—factors that have helped strengthen the country’s ability to withstand external shocks.

The ratings agency also pointed to progress in foreign exchange market reforms, which have remained a central pillar of government policy aimed at improving transparency, liquidity, and investor confidence in the currency market.

On the fiscal side, S&P highlighted ongoing efforts to widen the tax base, enhance revenue mobilisation, and improve public financial management. It further noted that Nigeria’s debt-to-revenue position has shown signs of improvement since 2023, with expectations of further consolidation if reforms are sustained.

Government officials said the successive upgrades by major global rating agencies signal a “clear shift in perception” about Nigeria’s macroeconomic direction, adding that the country is gradually restoring confidence in its economic governance framework.

The administration also reaffirmed its commitment to maintaining a market-driven economy anchored on transparency, competition, and disciplined fiscal management. It defended the removal of fuel subsidies as a necessary reform, arguing that it has reduced fiscal strain and redirected resources toward more productive national priorities.

However, the government acknowledged that key challenges remain, including inflationary pressures, food insecurity, and unemployment. It stressed that the focus going forward is to ensure that macroeconomic gains translate into improved living standards for citizens.

Authorities further assured investors, development partners, and citizens that policy stability will remain a priority, with continued reforms aimed at strengthening resilience, attracting investment, and supporting inclusive growth.

The statement was issued by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, who reiterated the government’s commitment to sustaining reforms that position Nigeria for long-term economic competitiveness and stability.