Amanze Chinonye
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 a strong endorsement of the country’s ongoing economic reforms, Prime Business Africa reports.
In a statement issued on Saturday, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the latest rating action followed similar positive assessments by Fitch Ratings and Moody’s Ratings earlier in 2025.
According to the government, the upgrade reflects growing international confidence in Nigeria’s economic reform agenda, policy consistency, and medium-term growth prospects under the administration of President Bola Ahmed Tinubu.
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The statement noted that S&P cited improvements in Nigeria’s external position, stronger balance of payments performance, rising oil production, expanding domestic refining and export capacity, as well as sustained macroeconomic reforms, including the liberalisation of the foreign exchange market.
The government also said the rating agency acknowledged ongoing fiscal reforms targeted at expanding the tax base, improving revenue mobilisation, enhancing fiscal transparency, and strengthening debt sustainability.
It added that Nigeria’s debt-to-revenue ratio had improved significantly since 2023 and was expected to decline further as reforms mature.
“The upgrades by Fitch, Moody’s, and now S&P send a strong signal to global investors, development partners, financial markets, and the international business community that Nigeria is regaining macroeconomic credibility and restoring confidence in the management of its economy,” the statement said.
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The Federal Government reiterated its commitment to prudent fiscal management, macroeconomic stability, and structural reforms aimed at promoting inclusive and sustainable growth.
It also maintained its opposition to the reintroduction of fuel subsidies, arguing that such subsidies historically created fiscal distortions, encouraged smuggling, weakened foreign exchange liquidity, and diverted public resources from key national priorities.
The government further pledged to continue supporting a market-driven economy anchored on transparency, competition, and effective regulatory oversight, while providing a stable environment for businesses and investors.
Despite the positive outlook, the government acknowledged that significant challenges remain, particularly in addressing inflation, improving food security, creating jobs, and ensuring that economic growth translates into broad-based prosperity for Nigerians.
It stated that federal, state, and local governments would continue implementing reforms with “discipline, pragmatism, and compassion” while sustaining engagement with citizens and stakeholders.
The statement also expressed appreciation to Nigerians for their resilience and support during the reform process, adding that the improved ratings outlook would strengthen Nigeria’s ability to attract investment and secure financing on more favourable terms.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
