Nigeria’s sovereign rating upgraded to B as FG says reforms gaining traction
Chairman, Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele
Abdullateef Fowewe
Nigeria has welcomed a credit-rating upgrade by S&P Global Ratings on May 15, 2026, with the Federal Government saying the move confirms progress from the administration’s economic reforms and will help attract foreign investment.
This was revealed in a statement obtained on Saturday from the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele.
In the statement, Oyedele said, “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.
“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.”
S&P’s upgrade — the first since 2012 — follows similar positive rating actions by Fitch and Moody’s in 2025.
In its rationale, S&P highlighted improvements in Nigeria’s external position, stronger balance-of-payments dynamics, rising oil production approaching 1.5 million barrels per day, expanded domestic refining and export capacity, and sustained implementation of macroeconomic reforms such as 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,” Oyedele added, noting that “Nigeria’s debt-to-revenue ratio has improved significantly since 2023 and is projected to decline further as reforms continue to mature.”
Government position and policy
Oyedele reiterated the administration’s resistance to reintroducing fuel subsidies, saying the policy historically created “significant fiscal distortions, incentivised smuggling, weakened foreign exchange liquidity, and diverted scarce public resources away from critical national priorities.”
He said the government remains committed to a market-driven economy “anchored on transparency, competition, and effective regulatory oversight,” and pledged continued support for private investment.
Challenges remain
While welcoming the upgrade, the minister acknowledged persistent challenges including inflationary pressures, food security concerns, and the need to expand decent job opportunities so that growth benefits are broadly shared.
“While these positive ratings developments are encouraging, we recognise that the work ahead remains substantial,” the statement said.
However, Dailyeconomy observed that the rating improvement should help reduce Nigeria’s borrowing costs and broaden investor interest, but caution that sustained real-income gains and visible relief on cost-of-living pressures are needed to consolidate public support for reforms.
The government said it will continue to implement fiscal and structural reforms with “discipline, pragmatism, and compassion” and maintain engagement with states, local governments and citizens.
Oyedele concluded, “The improving outlook from leading global rating agencies will further position our country to attract investments 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.”
S&P’s upgrade completes a series of favourable assessments from the three major agencies after the 2025 actions by Fitch and Moody’s, signalling rising international confidence in Nigeria’s policy consistency and medium-term growth prospects.
