FG celebrates fresh S&P Upgrade amid ongoing Economic Reform push

By Kazeem Ugbodaga

The Federal Government has welcomed the decision by S&P Global Ratings to upgrade Nigeria’s sovereign credit rating from ‘B-’ to ‘B’ with a Stable Outlook, describing the development as a strong endorsement of the country’s ongoing economic reforms and improving macroeconomic outlook.

Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the latest upgrade further reflects growing international confidence in the economic policies being implemented under President Bola Tinubu’s administration.

According to Oyedele, the S&P upgrade follows similar positive rating actions earlier in 2025 by Fitch Ratings and Moody’s Ratings, signalling renewed optimism among global financial institutions regarding Nigeria’s economic direction.

He stated that the independent assessments affirmed that the government’s difficult but critical reforms were beginning to yield measurable gains, particularly in stabilising the economy and restoring investor confidence.

Oyedele noted that S&P cited improvements in Nigeria’s external position, stronger balance of payments performance, rising crude oil production, and expanding domestic refining and export capacity among factors that influenced the rating upgrade.

The minister also pointed to the continued implementation of key macroeconomic reforms, including foreign exchange market liberalisation and fiscal adjustments aimed at strengthening public finances and improving debt sustainability.

According to him, the agency recognised the government’s efforts to broaden the tax base, improve revenue generation, enhance fiscal transparency and reduce pressure on public debt obligations.

He added that Nigeria’s debt-to-revenue ratio had improved considerably since 2023 and was projected to decline further as reform measures continued to mature.

Oyedele said the positive assessments by Fitch, Moody’s and S&P collectively sent a strong signal to global investors, development partners and financial markets that Nigeria was rebuilding macroeconomic credibility and restoring confidence in the management of its economy.

He reiterated the government’s commitment to prudent fiscal management, macroeconomic stability and structural reforms capable of driving inclusive and sustainable economic growth.

The minister stressed that the Federal Government remained opposed to the reintroduction of fuel subsidies, which he said previously created major fiscal distortions, encouraged smuggling and weakened foreign exchange liquidity.

“We remain committed to a market-driven economy anchored on transparency, competition and effective regulatory oversight,” Oyedele stated.

He assured investors and businesses that the government would continue to support free enterprise and maintain a stable, transparent and predictable business environment.

While acknowledging the significance of the latest credit upgrade, Oyedele admitted that challenges remained, particularly in tackling inflation, improving food security and creating sustainable employment opportunities for Nigerians.

He said the Federal, State and Local Governments would continue implementing reforms with discipline and pragmatism while ensuring that economic growth translated into meaningful benefits for citizens.

The minister also appreciated Nigerians for what he described as their resilience, patience and support throughout the reform process, expressing optimism that the improved ratings would help attract more investments and enable the country to access financing on better terms.

Oyedele added that the government remained determined to build a fiscally sustainable and globally competitive economy capable of delivering long-term prosperity for all Nigerians.