Nigeria’s economic outlook has been upgraded to Positive from Stable by S&P Global Ratings, a move welcomed by the country’s economic managers as a confirmation of the effectiveness of President Bola Ahmed Tinubu’s reforms. The upgrade is seen as a significant endorsement of Nigeria’s economic direction, following similar upgrades by Moody’s and Fitch earlier in the year.
According to Minister of Finance and Coordinating Minister of the Economy, Wale Edun, the S&P upgrade completes a trio of favorable assessments for Nigeria in 2025. Edun noted that the alignment of the three major ratings agencies reflects tremendous confidence in the direction of the country’s fiscal, monetary, and structural reforms. He added that the upgrade is a testament to the renewed strength and stability of the economy.
Central Bank Governor, Olayemi Cardoso, also praised the revision, attributing it to the policies that have stabilized the country’s macroeconomic environment. Cardoso stated that the CBN has brought stability to the economy and become a beacon of hope. S&P Global Ratings cited improving economic indicators and sustained reform momentum as reasons for the revised outlook, noting that broad-based structural indicators are starting to improve following reform momentum that has been maintained since mid-2023.
President Tinubu has implemented major reforms, including petrol subsidy removal and exchange rate unification, aimed at boosting investor confidence and unlocking economic growth. Although these reforms have triggered inflation and a cost-of-living squeeze, key markers such as external reserves have strengthened, hitting $43.4 billion as of last week. S&P expects the implementation of new tax laws in 2026 to further improve fiscal efficiency and strengthen government revenue.
The upgrade by S&P Global Ratings is the third positive assessment of Nigeria’s economy this year, following revisions by Fitch and Moody’s in April and May 2025, respectively. This growing consensus among global rating agencies signals that Nigeria’s reforms are gaining traction. The country’s economic managers see the upgrade as a confirmation that their efforts are yielding results, and they expect the positive trend to continue with the implementation of further reforms.
