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

On May 15, 2026, S&P Global Ratings announced an upgrade of Nigeria's long-term foreign and local currency sovereign credit rating to 'B', affirming a short-term rating of 'B' with a stable outlook. The upgrade is attributed to ongoing economic reforms, including the liberalization of the foreign exchange market, which has improved access to foreign currency and bolstered investor confidence.

The agency noted that these reforms aim to broaden the tax base and increase petroleum revenue, which is expected to strengthen fiscal performance. S&P projected a decline in Nigeria's debt-to-revenue ratio from 500% in 2023 to 338% by 2026.

The decision not to reintroduce fuel subsidies is seen as a measure to prevent wider budget deficits and preserve foreign exchange liquidity. However, S&P warned that rising fuel prices linked to global oil market pressures could contribute to inflationary pressures.

The Nigerian Minister of Finance, Taiwo Oyedele, welcomed the upgrade, which aligns with similar ratings from Fitch and Moody's, reflecting growing international confidence in Nigeria's economic reforms under President Bola Tinubu's administration.