Presidency, Oyedele Attribute S&P Rating Upgrade to Growing International Confidence in Tinubu’s Reforms

Ndubuisi Francis in Abuja 

The Presidency and the Minister of Finance and Coordinating Minister for the Economy, Mr. Taiwo Oyedele, have said the recent upgrade of Nigeria’s sovereign credit rating by S&P Global Ratings was a reflection of the impact of economic reforms introduced by President Bola Tinubu’s administration since 2023.

The latest by S&P Global Ratings, announced at the weekend, followed similar positive ratings by Fitch Ratings and Moody’s Ratings in 2025.

It upgraded Nigeria’s long-term foreign and local currency sovereign credit ratings from ‘B-‘ to ‘B’ with a stable outlook, marking Nigeria’s first sovereign upgrade by S&P in 14 years, and signalling an apparent indication of the growing global confidence in the country’s macroeconomic direction. 

Among several key drivers cited for the upgrade were sustained structural reforms, including the 2023 liberalisation of the foreign exchange market, improved oil output and prices, combined with expanding domestic refining capacity.

S&P also considered a stronger balance of payments position, fiscal consolidation arising from progress in revenue generation and measures to reduce fiscal pressures.

In a statement issued yesterday by the Special Assistant to the President on Social Media, Dada Olusegun, the Presidency said the development signaled the growing confidence in the country’s economic direction.
“Beyond the global increase in oil prices, S&P’s eventual upgrade of Nigeria’s credit rating, for the first time since 2012, reiterates the resilience and commitment of the current administration to holistically reset the trajectory of our nation’s economy, without being distracted by its adversaries,” the statement said.
According to the statement, Nigeria recorded “a drastic improvement in oil production between 2023 and the present through enhanced security measures and strategic investments.”
It added that fiscal reforms were expected to reduce the country’s debt-to-revenue ratio to 338 per cent in 2026, down from about 500 per cent in 2023.
The statement further noted that sustained policy measures, including subsidy removal and FX liberalisation, were central to the improved outlook.
It said, “Nigeria’s current account surplus is expected to grow to 5.8% of GDP in 2026, up from 4.8% in 2025.”
It also projected that inflation would average 17.7 per cent in 2026 before easing below 10 per cent by 2028.
On his part, Oyedele welcomed S&P Global Ratings’ decision to upgrade Nigeria’s sovereign credit rating from ‘B-’ to ‘B’ with a Stable Outlook, saying it further reinforced growing international confidence in Nigeria’s economic reform trajectory, policy consistency, and medium-term growth prospects. 

In a statement, Oyedele said, “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. 

“In particular, S&P highlighted improvements in Nigeria’s external position, stronger balance of payments dynamics, increased oil production, expanding domestic refining and export capacity, and the sustained implementation of key macroeconomic reforms, including foreign exchange market liberalisation. 

“The agency also recognised ongoing fiscal reforms aimed at broadening the tax base, improving public revenue mobilisation, enhancing fiscal transparency, and strengthening debt sustainability. 

“Notably, Nigeria’s debt-to-revenue ratio has improved significantly since 2023 and is projected to decline further as reforms continue to mature.”

According to the minister, 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. 

He stated that the government remains firmly committed to prudent fiscal management, macroeconomic stability, and structural reforms that promote inclusive and sustainable growth. 

“We have maintained our position against the reintroduction of inefficient fuel subsidies which historically created significant fiscal distortions, incentivised smuggling, weakened foreign exchange liquidity, and diverted scarce public resources away from critical national priorities. 

“We remain committed to a market-driven economy anchored on transparency, competition, and effective regulatory oversight. Accordingly, the federal government will continue to uphold policies that support free enterprise, respect private investment, and provide a stable and predictable environment for businesses and investors to thrive,” he said.