Federal Government welcomes upgrade of Nigeria’s sovereign credit rating by S&P Global Ratings

Business, Politics

ABUJA, Nigeria (NPA) — The Federal Government of Nigeria has welcomed the decision by S&P Global Ratings to upgrade the country’s sovereign credit rating from ‘B-’ to ‘B’ with a Stable Outlook.

In a statement issued on Saturday, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the latest upgrade follows similar positive rating actions in 2025 by Fitch Ratings and Moody’s Ratings, reinforcing growing international confidence in Nigeria’s economic reform trajectory, policy consistency, and medium-term growth prospects.

According to Oyedele, these independent assessments affirm that the difficult but necessary reforms undertaken under the leadership of President Bola Ahmed Tinubu, GCFR, are yielding measurable results and laying the foundation for a more stable, transparent, and resilient economy. S&P highlighted improvements in Nigeria’s external position, stronger balance of payments dynamics, increased oil production, expanding domestic refining and export capacity, and sustained implementation of key macroeconomic reforms, including foreign exchange market liberalisation.

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The agency also recognised ongoing fiscal reforms aimed at broadening the tax base, improving public revenue mobilisation, enhancing fiscal transparency, and strengthening debt sustainability. Nigeria’s debt-to-revenue ratio has improved significantly since 2023 and is projected to decline further as reforms continue to mature.

Oyedele noted that the 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.

He reaffirmed the government’s commitment to prudent fiscal management, macroeconomic stability, and structural reforms that promote inclusive and sustainable growth. He stressed that Nigeria has maintained its position against the reintroduction of inefficient fuel subsidies, which historically created fiscal distortions, incentivised smuggling, weakened foreign exchange liquidity, and diverted scarce public resources away from critical national priorities.

The Minister added that while these positive ratings developments are encouraging, the government remains focused on addressing inflationary pressures, improving food security, expanding decent job opportunities, and ensuring that economic growth translates into meaningful prosperity for all Nigerians.

The Federal Government expressed appreciation for the resilience, patience, and support of Nigerians in the reform journey, noting that the improving outlook from leading global rating agencies will further position the country to attract investments and secure financing on more favourable terms. Oyedele concluded that Nigeria is strengthened in its resolve to build a stronger economy that is globally competitive, fiscally sustainable, and works for all citizens.