Abuja — The Federal Government has welcomed the decision by S&P Global Ratings to upgrade Nigeria’s sovereign credit rating from ‘B-’ to ‘B’ with a Stable Outlook, describing the development as growing international validation of the country’s economic reform programme under President Bola Ahmed Tinubu.
In a statement issued on Friday, Finance Minister Taiwo Oyedele said the upgrade reinforces confidence in Nigeria’s economic policy direction, reform consistency, and medium-term growth prospects.
According to the minister, the latest rating action follows similar positive assessments by major global agencies including Fitch Ratings and Moody’s Ratings earlier in 2025.
“These independent assessments collectively affirm that the difficult but necessary reforms undertaken under the leadership of President Bola Ahmed Tinubu are yielding measurable results and laying the foundation for a more stable, transparent, and resilient economy,” Oyedele said.
S&P cited improvements in Nigeria’s external position, stronger balance-of-payments dynamics, rising oil production, expanding domestic refining and export capacity, and sustained macroeconomic reforms — particularly foreign exchange liberalisation — as major drivers behind the upgrade.
The agency also acknowledged ongoing fiscal reforms aimed at broadening the tax base, improving public revenue mobilisation, enhancing transparency, and strengthening debt sustainability.
According to the government, Nigeria’s debt-to-revenue ratio has improved significantly since 2023 and is projected to decline further as reforms mature.
Oyedele said the rating upgrades send a strong signal to international investors, financial markets, and development partners that Nigeria is regaining macroeconomic credibility after years of structural instability.
The minister reaffirmed the administration’s commitment to maintaining a market-driven economy anchored on transparency, competition, and regulatory oversight.
He also defended the government’s position against the return of fuel subsidies, arguing that subsidies historically distorted public finances, weakened foreign exchange liquidity, encouraged smuggling, and diverted resources away from critical national priorities.
“We remain committed to prudent fiscal management, macroeconomic stability, and structural reforms that promote inclusive and sustainable growth,” the statement said.
Despite the positive rating action, the government acknowledged that economic challenges remain substantial, particularly inflationary pressures, food security concerns, and unemployment.
Oyedele said the Federal Government would continue pursuing reforms while focusing on ensuring that economic growth translates into broader and more inclusive prosperity for Nigerians.
Analysts say the S&P upgrade could help improve investor sentiment, reduce Nigeria’s international borrowing costs, and strengthen confidence in the country’s reform trajectory, although the country remains below investment grade and continues to face significant fiscal and social pressures.