Investor sentiment around Nigeria’s economy continues to show signs of gradual improvement, with major international ratings agencies revising their assessments upward amid ongoing fiscal and policy reforms.
A fresh boost came as S&P Global Ratings upgraded Nigeria’s sovereign credit rating from B- to B, while maintaining a Stable Outlook. The upgrade signals a modest but meaningful shift in how global markets perceive the country’s economic trajectory.
The development was made public on Saturday in a post on X by Nigeria’s Minister of Finance, Taiwo Oyedele, who highlighted that the latest action aligns with broader international reassessments of the country.
“This latest upgrade by S&P follows similar positive rating actions in 2025 by Fitch Ratings and Moody’s Ratings,” Mr Oyedele wrote.
He also pointed to a broader pattern of improving assessments from other leading agencies, noting that Nigeria’s sovereign outlook has been strengthened across multiple reviews.
Earlier in the year, both Fitch Ratings and Moody's Ratings also revised Nigeria’s rating upward, with Fitch similarly moving the country from B- to B and maintaining a stable outlook.
According to Mr Oyedele, the coordinated improvements across the three major rating institutions reflect growing international confidence in the direction of Nigeria’s economic management under President Bola Tinubu.
“It further reinforces growing international confidence in Nigeria’s economic reform trajectory, policy consistency, and medium-term growth prospects,” he wrote.
Reform Signals and Market Perception
The upgraded ratings are widely interpreted as a response to recent policy shifts aimed at stabilising macroeconomic conditions, improving fiscal discipline, and attracting foreign investment. While Nigeria remains within the speculative-grade category, the upward revisions suggest that global analysts are beginning to price in expectations of improved economic stability over the medium term.
Bola Tinubu has positioned economic reform as a central pillar of his administration, with emphasis on structural adjustments intended to strengthen revenue generation and restore investor confidence.
For policymakers, the latest move by S&P adds momentum to a narrative of cautious optimism—one where progress is acknowledged, but sustained implementation remains key to further upgrades.
Read Mr Oyedele’s full statement below
The Federal Government welcomes the decision by S&P Global Ratings to upgrade Nigeria’s sovereign credit rating from ‘B-’ to ‘B’ with a Stable Outlook.
This latest upgrade by S&P follows similar positive rating actions in 2025 by Fitch Ratings and Moody’s Ratings. It further reinforces growing international confidence in Nigeria’s economic reform trajectory, policy consistency, and medium-term growth prospects.
These independent assessments collectively 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.
In particular, S&P highlighted improvements in Nigeria’s external position, stronger balance of payments dynamics, increased oil production, expanding domestic refining and export capacity, and the sustained implementation of key macroeconomic reforms including foreign exchange market liberalisation.
The agency also recognised ongoing fiscal reforms aimed at broadening the tax base, improving public revenue mobilisation, enhancing fiscal transparency, and strengthening debt sustainability. Notably, Nigeria’s debt-to-revenue ratio has improved significantly since 2023 and is projected to decline further as reforms continue to mature.
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.
The government remains firmly committed to prudent fiscal management, macroeconomic stability, and structural reforms that promote inclusive and sustainable growth. 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.
We remain committed to a market-driven economy anchored on transparency, competition, and effective regulatory oversight. Accordingly, the Federal Government will continue to uphold policies that support free enterprise, respect private investment, and provide a stable and predictable environment for businesses and investors to thrive.
While these positive ratings developments are encouraging, we recognise that the work ahead remains substantial. 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 Federal, States and Local Governments will continue to implement reforms with discipline, pragmatism, and compassion while maintaining close engagement with citizens and all stakeholders.
The Federal Government appreciates the resilience, patience, and support of Nigerians in this reform journey. The improving outlook from leading global rating agencies will further position our country to attract investments and and enhance the country’s ability to secure financing on more favourable terms. We are strengthened in our resolve to build a stronger economy that is globally competitive, fiscally sustainable, and works for all Nigerians.