S&P Global Ratings has revised its outlook on Nigeria to “positive” from “stable”, citing the country’s ongoing economic reforms. The rating agency affirmed Nigeria’s rating at “B-/B”, indicating a positive growth outlook for both the hydrocarbon and non-hydrocarbon sectors. According to S&P, the monetary, economic, and fiscal reforms being implemented by Nigerian authorities will yield positive benefits over the medium term.
The reforms, which include the removal of petrol subsidies and currency trading restrictions, are expected to spur growth and attract foreign investment. President Bola Tinubu’s administration launched these reforms in 2023, aiming to support long-term economic expansion. While implementation hurdles and global oil price volatility still pose risks, analysts believe that sustained reforms could lead to significant economic gains.
S&P’s outlook revision follows a similar upgrade by Moody’s in May, which raised Nigeria’s rating to “B3” from “Caa1”, citing improvements in the country’s external and fiscal positions. Fitch also maintained its “B” rating and “stable” outlook last month. To bridge fiscal gaps, Nigeria has turned to debt markets, raising $2.35 billion through a Eurobond issuance to finance its 2025 budget deficit.
The positive outlook revision by S&P reflects the potential for continued gains in Nigeria’s external and monetary analysis. The country’s economic reforms are expected to yield positive outcomes, with the growth outlook improving for both the hydrocarbon and non-hydrocarbon sectors. As Nigeria continues to implement these reforms, the country’s economic prospects are likely to remain a key focus for investors and rating agencies alike. With the international community closely watching the country’s progress, Nigeria’s ability to sustain its reforms will be crucial in determining its long-term economic trajectory.
