Presidency says rising investor confidence, stronger oil output and sweeping fiscal reforms are helping reposition Nigeria’s economy despite inflation and hardship concerns…..
Nigeria has recorded its first sovereign credit rating upgrade from S&P Global Ratings in more than a decade, a development the Presidency says validates the economic reforms introduced by President Bola Tinubu since assuming office in 2023.
In a statement released on Saturday, the Special Assistant to the President on Social Media, Dada Olusegun, described the upgrade as a strong signal that international investors and financial institutions are beginning to regain confidence in Nigeria’s economic direction.
According to the Presidency, the latest decision by S&P Global Ratings reflects the impact of key policy changes implemented by the Tinubu administration, including the removal of fuel subsidies, foreign exchange reforms, tax restructuring efforts and improvements in the country’s oil sector.
The government also pointed to increased local refining capacity and the implementation of Executive Order 9 on petroleum revenue management as part of the reforms helping to stabilise the economy.
“Beyond the global increase in oil prices, the upgrade shows the resilience and determination of the current administration to reset Nigeria’s economic trajectory despite criticism and opposition,” the statement noted.
S&P upgraded Nigeria’s long-term foreign and local currency sovereign credit ratings from “B-” to “B” while maintaining a stable outlook.
The global ratings agency said the decision was driven by what it described as significant structural reforms carried out over the past three years, particularly in the area of exchange rate liberalisation and macroeconomic management.
The Presidency said Nigeria has also witnessed a sharp improvement in crude oil production since 2023 due to tighter security measures and renewed investments in the sector.
Officials believe the reforms could significantly improve the country’s fiscal position over the next few years. Government projections indicate that Nigeria’s debt-to-revenue ratio may decline to 338 per cent by 2026, compared to nearly 500 per cent in 2023.
The statement further revealed that Nigeria’s current account surplus is expected to rise from 4.8 per cent of GDP in 2025 to 5.8 per cent in 2026, while inflation could gradually slow to below 10 per cent by 2028.
Despite the positive outlook, S&P warned that inflationary pressures remain a major concern, especially as global oil market tensions continue to push up fuel prices ahead of the 2027 general elections.
The agency also noted that poverty, unemployment, insecurity and low government revenue generation remain serious structural challenges capable of slowing economic progress if not addressed.
Reacting to the development, Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, described the upgrade as another sign of growing investor confidence in Nigeria’s reform agenda.
He noted that the latest rating action follows similar positive assessments issued earlier in the year by Fitch Ratings and Moody’s, suggesting that international financial institutions are beginning to acknowledge the government’s reform efforts.
For the Tinubu administration, the latest upgrade is likely to be presented as proof that its controversial economic policies though painful for many Nigerians in the short term are beginning to attract global confidence and improve the country’s long-term economic outlook.
