The Federal Government has welcomed S&P’s upgrade of Nigeria’s sovereign credit rating, describing it as a strong endorsement of President Tinubu’s economic reforms and investor confidence
Nigeria’s Credit Rating Upgraded by S&P as FG Says Economic Reforms Are Paying Off
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 the development as a major vote of confidence in the country’s ongoing economic reforms and a strong signal of renewed investor trust in Africa’s largest economy.
The latest assessment marks another significant boost for the administration of President Bola Ahmed Tinubu, coming after similar favourable ratings by Fitch Ratings and Moody’s earlier in 2025, in what government officials described as a rare convergence of positive global sentiment toward Nigeria’s reform direction.
Speaking on behalf of the government, Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the latest upgrade reflects growing international confidence in Nigeria’s economic management and medium-term growth outlook.
According to Oyedele, the assessment validates difficult but necessary reforms introduced by the current administration to stabilise the economy and reposition Nigeria for long-term growth.
“The difficult but necessary reforms undertaken are yielding measurable results and laying the foundation for a more stable, transparent, and resilient economy,” he stated.
S&P attributed the upgrade to improved external buffers, stronger balance of payments performance, rising oil production, expanding domestic refining capacity, and continued implementation of foreign exchange market reforms.
The rating agency also highlighted progress in fiscal consolidation efforts, alongside measures aimed at improving revenue mobilisation and strengthening debt sustainability.
Government officials said the improved rating reinforces “growing international confidence in Nigeria’s economic reform trajectory, policy consistency, and medium-term growth prospects,” while also enhancing the country’s attractiveness within global capital markets.
The administration pointed to improvements in key fiscal indicators, noting that Nigeria’s debt-to-revenue ratio has shown signs of improvement since 2023 and is expected to strengthen further as ongoing reforms mature.
Officials also emphasised continued efforts to widen the tax base, improve public revenue generation, and deepen transparency in public finance management.
On the controversial issue of fuel subsidies, the Federal Government maintained its firm opposition to any return of the regime, describing subsidies as fiscally unsustainable and harmful to economic efficiency.
According to the government, subsidy removal has reduced pressure on public finances and created room for broader economic restructuring, despite the short-term hardship experienced by many Nigerians.
The administration also reaffirmed its commitment to a market-driven economic framework built on transparency, competition, and regulatory oversight, stressing that policy stability remains essential for sustaining investor confidence and attracting long-term capital inflows.
While celebrating the positive ratings momentum, government officials acknowledged persistent economic pressures, particularly inflation and rising living costs, but insisted that efforts remain focused on ensuring that economic growth delivers tangible benefits to citizens.
The government said all levels of government would continue implementing reforms in a coordinated manner while maintaining engagement with citizens throughout the adjustment process.
Officials further expressed optimism that the positive outlook from major global rating agencies would strengthen Nigeria’s access to international financing and encourage fresh long-term investments as the country seeks to consolidate macroeconomic stability and accelerate economic recovery.
