S&P Upgrades Nigeria's Credit Rating to 'B' on Reforms

S&P Global Ratings upgraded Nigeria's sovereign credit rating from 'B-' to 'B' with a Stable Outlook on May 16, 2026, marking the latest in a series of ratings improvements following similar upgrades by Fitch Ratings and Moody's Ratings in 2025. The upgrade reflects improvements in Nigeria's external position, stronger balance of payments, increased oil production, and expanding domestic refining and export capacity. S&P also credited the liberalization of the foreign exchange market and fiscal reforms aimed at broadening the tax base and improving debt sustainability, noting a significant improvement in the debt-to-revenue ratio since 2023.

Finance Minister Taiwo Oyedele stated that the ratings affirm the results of economic reforms under President Bola Tinubu and signal a return of macroeconomic credibility to global investors. The upgrade represents a milestone for the Tinubu administration, which has pursued difficult economic policy changes including fuel subsidy removal and exchange rate unification.

Despite the positive assessment, the government acknowledged ongoing challenges regarding inflationary pressures, food security, and job creation, indicating that the reform agenda remains incomplete. The progression from Fitch and Moody's upgrades in 2025 to S&P's upgrade in 2026 demonstrates a growing consensus among major credit rating agencies that Nigeria's macroeconomic reforms are producing measurable results. The Stable Outlook assigned by S&P suggests the agency expects these trends to continue, though the acknowledged challenges highlight risks that could test the sustainability of the improvements.