S&P Global: Tinubu's Reforms Drive Nigeria's Economic Growth

S&P Global analysts have indicated that the economic reforms introduced by President Bola Tinubu are driving growth in Nigeria, despite ongoing volatility in the naira. During a webinar focused on Africa's credit cycle, analysts expressed cautious optimism regarding Nigeria's economic outlook, expecting sustained growth in the coming years.

The agency forecasts an average real GDP growth of 3.7% for the period of 2025-2026, bolstered by ongoing support from the International Monetary Fund (IMF). The report highlights Nigeria's significant progress in narrowing the gap between official and parallel market exchange rates, although it warns that the banking sector remains sensitive due to nearly 50% of loans being denominated in foreign currency.

The session also addressed broader economic conditions across Africa, noting challenges and successes in various countries, while emphasizing the need for strict fiscal discipline among African governments to avoid liquidity traps.