S and P Upgrades Nigeria Outlook to Positive, Cites Gains from Tinubu Reforms

S and P Upgrades Nigeria Outlook to Positive Cites Gains from Tinubu Reforms
President Bola Tinubu began implementing major reforms including the removal of the petrol subsidy in 2023
S and P stated that its decision reflects confidence in the reform agenda

S&P Global Ratings has revised its outlook on Nigeria to positive from stable, citing confidence in the country’s ongoing economic reforms.

Eko Hot Blog reports that the agency also affirmed Nigeria’s sovereign credit rating at B minus B, noting that the monetary, economic and fiscal reforms introduced by the Federal Government are expected to deliver significant benefits over the medium term.

According to S and P, Nigeria’s growth outlook is improving across both the hydrocarbon and nonhydrocarbon sectors, driven by policy changes aimed at stabilising the economy and strengthening external buffers.

“We have revised our outlook on Nigeria to positive from stable based on the potential for continued gains particularly in our external and monetary analysis. We also affirmed our B minus B sovereign credit ratings on Nigeria,” the agency said.

S and P Upgrades Nigeria Outlook to Positive Cites Gains from Tinubu Reforms

S and P stated that its decision reflects confidence in the reform agenda of the current administration, noting that policy adjustments will likely enhance economic stability in the long run.

In 2023, President Bola Tinubu began implementing major reforms including the removal of the petrol subsidy and the elimination of currency trading restrictions. These measures were designed to attract investment, boost growth and reduce fiscal pressures.

Analysts say that if the reforms are sustained they could support long term economic expansion, although external risks such as global oil price volatility remain concerns.

Nigeria has continued to seek financing to bridge fiscal gaps. Last week, the country raised 2.35 billion dollars through a Eurobond issuance to fund part of the 2025 budget deficit while also borrowing from domestic markets.

Moody’s in May upgraded Nigeria’s rating to B3 from Caa1 citing improvements in external and fiscal indicators. Fitch last month maintained its B rating with a stable outlook.