The Federal Government has described the latest sovereign credit rating upgrade by S&P Global Ratings as a strong sign that Nigeria’s ongoing economic reforms are beginning to restore investor confidence and strengthen macroeconomic stability.
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S&P recently upgraded Nigeria’s sovereign credit rating from ‘B-’ to ‘B’ with a Stable Outlook, making it the third major international rating agency to issue a positive assessment on the country’s economy in 2025 after Fitch Ratings and Moody’s Ratings.
Reacting to the development, the Federal Government said the upgrade reflects growing international confidence in Nigeria’s reform direction, policy consistency, and medium-term economic growth prospects under the administration of President Bola Ahmed Tinubu.
According to the government, the positive ratings from the three global agencies show that recent reforms are producing measurable results despite the initial economic challenges faced by Nigerians.
In a statement signed by the Honourable Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, the government noted that S&P acknowledged improvements in Nigeria’s external financial position, stronger balance of payments performance, increased oil production, and the expansion of domestic refining and export capacity.
The statement also pointed to continued implementation of macroeconomic reforms, especially the liberalisation of the foreign exchange market, as one of the factors behind the improved rating.
“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,” the statement said.
The government further explained that ongoing fiscal reforms aimed at broadening the tax base, improving public revenue generation, increasing fiscal transparency, and strengthening debt sustainability also contributed to the upgrade.
According to the statement, Nigeria’s debt-to-revenue ratio has improved significantly since 2023 and is expected to decline further as reforms continue to mature.
The Federal Government said the latest rating actions by S&P, Fitch, and Moody’s send a positive message to global investors, development institutions, and international financial markets that Nigeria is regaining macroeconomic credibility.
It also reaffirmed its commitment to maintaining prudent fiscal management and sustaining policies that encourage private sector investment and free enterprise.
The government maintained its opposition to the return of fuel subsidies, describing them as inefficient and harmful to public finances due to their impact on foreign exchange liquidity, smuggling, and government spending priorities.
While welcoming the latest rating upgrade, the government admitted that significant work still remains, especially in tackling inflation, improving food security, creating jobs, and ensuring that economic growth benefits ordinary Nigerians.
It added that the Federal, State, and Local Governments would continue implementing reforms with “discipline, pragmatism, and compassion” while engaging citizens and stakeholders across the country.
