The Presidency has welcomed the recent upgrade of Nigeria’s sovereign credit rating by S&P Global Ratings, attributing it to the economic reforms implemented by President Bola Tinubu’s administration since 2023. This development signals growing confidence in the country’s economic direction.
In a statement, the Presidency noted that S&P’s upgrade, the first since 2012, reiterates the administration's commitment to resetting the nation's economy. The agency cited increased oil production, tax reforms, fuel subsidy removal, foreign exchange liberalisation, improved local refining capacity, and the implementation of Executive Order 9 on petroleum revenue management as key factors.
Nigeria has reportedly seen a drastic improvement in oil production between 2023 and the present due to enhanced security measures and strategic investments. Fiscal reforms are anticipated to reduce the country’s debt-to-revenue ratio to 338% in 2026, down from about 500% in 2023. Sustained policy measures, including subsidy removal and FX liberalisation, were central to the improved outlook.
S&P Global Ratings upgraded Nigeria’s long-term foreign and local currency sovereign credit ratings to “B” from “B-”, affirming a stable outlook. The agency stated that the decision followed three years of structural reforms that improved Nigeria’s macroeconomic profile, external position, and investor confidence, particularly through exchange rate liberalisation.
However, S&P warned that rising fuel prices driven by global oil market tensions could sustain inflationary pressure. The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, stated that the upgrade reflects sustained investor confidence and follows similar improvements by Fitch Ratings and Moody’s in 2025. The outlook remains stable but depends on the continuation of reforms amid structural challenges such as poverty, unemployment, insecurity, and low revenue generation.
The Federal Government also welcomed the upgrade, viewing it as further evidence that reforms under President Bola Ahmed Tinubu are restoring international confidence. Minister Taiwo Oyedele highlighted that the upgrade follows similar positive actions by Fitch Ratings and Moody’s in 2025, reinforcing confidence in Nigeria’s economic reform trajectory, policy consistency, and medium-term growth prospects.
The government acknowledged that S&P specifically highlighted improvements in Nigeria’s external financial position, stronger balance of payments performance, increased crude oil production, and expanding domestic refining capacity. Reforms in the foreign exchange market and fiscal policies aimed at improving revenue generation, debt sustainability, and transparency were also recognized.
Nigeria’s debt-to-revenue ratio has improved significantly since 2023 and is projected to decline further. The government reiterated its opposition to reintroducing fuel subsidies, citing their historical negative impacts on the economy. While acknowledging that significant economic pressures remain, including elevated inflation and food insecurity, the government remains committed to addressing these challenges and ensuring inclusive prosperity.
