The Federal Government has described the latest upgrade of Nigeria’s sovereign credit rating by S&P Global Ratings as further evidence that the country’s economic reforms are beginning to restore international confidence in the economy.

In a statement issued on Saturday, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the government welcomed S&P’s decision to raise Nigeria’s sovereign credit rating from “B-” to “B” with a stable outlook.

According to him, the latest action follows similar positive rating decisions earlier in 2025 by Fitch Ratings and Moody’s Ratings.

The minister said the upgrades collectively reflect growing confidence among international financial institutions and investors in Nigeria’s reform direction and medium-term economic outlook.

“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,” Mr Oyedele stated.

He added that the S&P specifically highlighted improvements in Nigeria’s external financial position, stronger balance of payments performance, increased crude oil production and expanding domestic refining capacity.

The agency also recognised ongoing reforms in the foreign exchange market and fiscal policies aimed at improving revenue generation, debt sustainability and transparency in public finance management, according to the statement.

Mr Oyedele noted that Nigeria’s debt-to-revenue ratio has improved significantly since 2023 and is projected to decline further as reforms continue to take effect.

He said the upgrades from Fitch, Moody’s and S&P send a strong signal to global investors and development partners that Nigeria is gradually rebuilding macroeconomic credibility.

“The government remains firmly committed to prudent fiscal management, macroeconomic stability and structural reforms that promote inclusive and sustainable growth,” he noted.

He also reiterated the government’s position against the return of fuel subsidies, arguing that previous subsidy regimes created major fiscal distortions, encouraged smuggling and weakened foreign exchange liquidity.

According to him, the administration remains committed to maintaining a market-driven economy built on transparency, competition and regulatory oversight.

The minister added that the government would continue implementing policies aimed at supporting private investment and creating a stable environment for businesses.

READ ALSO: Tinubu defends economic reforms at Africa CEO Forum in Kigali

Despite the positive ratings outlook, the minister acknowledged that Nigeria still faces major economic challenges, including inflationary pressures, food insecurity and unemployment.

“We are focused on addressing inflationary pressures, improving food security, expanding decent job opportunities, and ensuring that economic growth translates into meaningful and inclusive prosperity for all Nigerians,” he said.

He added that federal, state and local governments would continue implementing reforms “with discipline, pragmatism and compassion” while engaging citizens and stakeholders.

FG welcomes S&P rating upgrade, says it shows more confidence in Nigeria's economic reforms

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