Nigeria gains investor confidence after S&P upgrades

Nigeria has received a fresh boost in international economic confidence after S&P Global Ratings upgraded the country’s sovereign credit rating from ‘B-’ to ‘B’ with a Stable Outlook, signalling improving investor sentiment and strengthening macroeconomic fundamentals.

The Federal Government welcomed the decision, describing it as a validation of ongoing economic reforms under President Bola Ahmed Tinubu’s administration.

The upgrade follows similar positive assessments earlier in 2025 by Fitch Ratings and Moody’s, reinforcing what analysts now see as a coordinated shift in global perception of Nigeria’s economic direction.

According to S&P, the upgrade reflects improvements in Nigeria’s external position, stronger balance of payments performance, rising oil production, expanding domestic refining capacity, and the implementation of key structural reforms such as foreign exchange market liberalisation.

The agency also highlighted progress in fiscal management, including efforts to broaden the tax base, improve revenue mobilisation, enhance transparency in public finances, and strengthen debt sustainability indicators.

Government data shows that Nigeria’s debt-to-revenue ratio has improved significantly since 2023, with further gains expected as reforms mature.

Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the development signals growing international trust in Nigeria’s policy direction and economic management.

He noted that the combined upgrades from the world’s top rating agencies demonstrate that difficult but necessary reforms are beginning to yield measurable results.

The government emphasised that ending inefficient fuel subsidies, liberalising the foreign exchange market, and promoting a market-driven economy remain central to stabilising public finances and attracting long-term investment.

While acknowledging ongoing challenges such as inflation, food security concerns, and unemployment, officials say the improved rating strengthens Nigeria’s position in global financial markets and enhances its ability to access financing on more favourable terms.

Overall, the upgrade is being viewed as a turning point that could help reposition Nigeria as a more credible and attractive destination for investors, while supporting the broader goal of building a more resilient and sustainable economy.