Presidency Hails Tinubu’s Economic Reforms Over S&P Rating Upgrade

The Presidency has described the recent upgrade of Nigeria’s sovereign credit rating by S&P Global Ratings as a strong indication that the economic reforms introduced under President Bola Tinubu’s administration are beginning to yield positive results.

In a statement released on Saturday by the President’s Special Assistant on Social Media, Dada Olusegun, the Presidency said the improved rating reflects growing international confidence in Nigeria’s economic management and reform direction since 2023.

According to the statement, the rating upgrade — Nigeria’s first by S&P since 2012 — demonstrates the resilience of the country’s economy and the administration’s determination to reposition it despite political criticism and economic challenges.

The Presidency noted that the global ratings agency linked the upgrade to several ongoing reforms, including increased oil production, fuel subsidy removal, tax reforms, foreign exchange liberalisation, improved domestic refining capacity, and the implementation of Executive Order 9 on petroleum revenue management.

It added that Nigeria’s oil output has significantly improved over the past few years due to tighter security measures and strategic investments in the sector.

The statement also highlighted projections showing an improvement in the country’s fiscal position, with the debt-to-revenue ratio expected to decline to 338 per cent by 2026 from nearly 500 per cent in 2023.

According to the Presidency, key policy decisions such as subsidy removal and exchange rate reforms have played a major role in strengthening Nigeria’s economic outlook.

It further projected that the country’s current account surplus could rise to 5.8 per cent of GDP in 2026, compared to 4.8 per cent in 2025, while inflation is expected to average 17.7 per cent in 2026 before gradually dropping below 10 per cent by 2028.

S&P Global Ratings had on Friday upgraded Nigeria’s long-term foreign and local currency sovereign credit ratings from “B-” to “B”, while maintaining a stable outlook.

The agency said the decision was driven by structural reforms carried out over the last three years, particularly exchange rate liberalisation, which it said had strengthened Nigeria’s macroeconomic environment, external reserves, and investor confidence.

However, S&P cautioned that rising global oil prices and fuel costs could continue to place pressure on inflation, especially as the country approaches the 2027 general elections.

Reacting to the development, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, described the upgrade as another sign of sustained investor confidence in Nigeria’s economy.

He noted that the latest development follows similar positive assessments issued by Fitch Ratings and Moody’s earlier in 2025.

Despite the improved outlook, S&P maintained that Nigeria still faces major structural challenges, including poverty, unemployment, insecurity, and low revenue generation, stressing that continued reforms would be necessary to sustain economic progress.