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Nigeria’s Economic Outlook Upgraded to Positive by S&P Global Ratings
Wale Edun, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, has welcomed the recent upgrade of Nigeria’s credit outlook by S&P Global Ratings from Stable to Positive. He emphasized the government’s ongoing commitment to executing coordinated policies designed to restore and maintain macroeconomic stability.
Government Reforms Gain Global Recognition
In a statement issued on Saturday, Edun highlighted that while Nigeria’s long- and short-term credit ratings remained at ‘B-/B’, the positive outlook revision serves as a strong validation of the fiscal, monetary, and structural reforms initiated under President Bola Tinubu’s leadership.
“I am pleased to learn that S&P Global Ratings has upgraded Nigeria’s outlook to Positive from Stable, reaffirming our ‘B-/B’ rating,” Edun remarked.
This development signals growing international confidence in Nigeria’s reform agenda, which aims to strengthen economic fundamentals and enhance fiscal discipline.
Consensus Among Major Credit Rating Agencies
Edun noted that this upgrade aligns with earlier positive assessments from Moody’s and Fitch Ratings within the same year, marking a unified stance among the three leading global credit rating agencies regarding Nigeria’s improving creditworthiness.
“This consensus underscores robust confidence in the trajectory of our fiscal, monetary, and structural reforms, as well as the renewed resilience and stability of our economy,” he added.
Reforms Yielding Tangible Economic Benefits
The Minister pointed out that S&P’s decision reflects the agency’s recognition of enhanced growth prospects, stronger external financial buffers, and more effective monetary policy outcomes. These improvements are becoming increasingly evident as the reform measures take effect.
Recent policy initiatives include the liberalization of the exchange rate, removal of fuel subsidies, intensified revenue mobilization efforts, and increased oil production. Additionally, the commissioning of the Dangote Refinery is expected to significantly transform Nigeria’s energy sector, reducing import dependency and boosting local refining capacity.
Edun’s Commitment to Sustained Economic Progress
Edun reaffirmed the government’s dedication to continuing the reform momentum, acknowledging that while challenges remain, the foundations laid today will foster inclusive and sustainable economic growth for the future.
“We recognize that more work lies ahead, but the policies we are implementing will attract investment, create jobs, and restore macroeconomic stability,” he stated.
He also praised President Tinubu’s steadfast leadership and political resolve in advancing reforms that had been long overdue, as well as the resilience of Nigerians during this period of economic transition.
Insights from S&P Global Ratings
In its Friday statement, S&P Global Ratings cited Nigeria’s persistent reform efforts and improving macroeconomic indicators as key reasons for the positive outlook revision. The agency maintained Nigeria’s national scale ratings at ‘ngBBB+/ngA-2’.
“The positive outlook reflects improving external, economic, fiscal, and monetary results,” S&P noted, while also highlighting ongoing challenges such as low GDP per capita, high debt servicing costs, and gaps in structural data.
Projected Economic Growth and Stability
S&P raised its forecast for Nigeria’s average GDP growth to 3.7% annually between 2025 and 2028, up from a previous estimate of 3.2%. This optimistic outlook is driven by increased oil production and growing confidence in the private sector.
- Inflation is expected to gradually decline, reaching approximately 13% by 2028.
- Gross foreign reserves have improved, estimated at nearly $44 billion as of October 2025.
Furthermore, Nigeria’s removal from the Financial Action Task Force’s grey list and the establishment of a more stable naira exchange rate regime have contributed to increased diaspora remittances and foreign portfolio investments.
Looking Ahead: Building a Resilient Nigerian Economy
Edun concluded by emphasizing that the endorsement from global rating agencies strengthens the government’s resolve to build a more dynamic, prosperous, and resilient Nigerian economy.
“The confidence expressed by these institutions motivates us to continue delivering reforms that will benefit all Nigerians,” he affirmed.
