S&P Questions Nigeria's 2029 Investment-Grade Goal

S&P Global Ratings has expressed skepticism regarding Nigeria's ambition to regain investment-grade credit status by 2029, citing a significant ratings gap that may take longer than three years to close. Samira Mensah, Managing Director for Research and Analytics in Africa at S&P, stated that historically, no sovereign has moved from a single-B credit rating to investment grade within three years.

Currently, Nigeria holds a B rating with a stable outlook from S&P, which is five notches below investment grade. Finance Minister Taiwo Oyedele previously announced the government's target to attract more capital and strengthen investor confidence through this upgrade.

S&P upgraded Nigeria's credit rating in May for the first time since 2012, attributing the improvement to ongoing economic reforms, higher oil prices, and enhanced capacity to refine and export crude oil. These reforms, initiated by President Bola Tinubu since May 2023, include the removal of petrol subsidies and the liberalization of the foreign exchange market.

S&P is set to provide its next assessment of Nigeria's creditworthiness soon.