Nigeria’s ongoing fiscal and foreign exchange reforms have earned fresh global recognition after S&P Global Ratings upgraded the country’s sovereign credit rating from “B-” to “B” with a stable outlook.
The international ratings agency said the upgrade reflects improvements in Nigeria’s external reserves, foreign exchange liquidity, fiscal revenues and broader economic reforms implemented over the past three years.
S&P also affirmed Nigeria’s short-term sovereign ratings at “B” while upgrading the country’s national scale ratings to “ngA+/ngA-1” from “ngBBB+/ngA-2”.
According to the agency, reforms introduced under the leadership of Central Bank Governor Olayemi Cardoso helped restore confidence in the economy and improve macroeconomic stability.
“Following three years of sustained structural reforms, Nigeria’s creditworthiness has improved,” S&P stated.
The agency noted that the liberalisation of the foreign exchange market in 2023 improved access to foreign currency and supported the transition to a market-driven exchange rate system.
S&P disclosed that average monthly foreign exchange turnover rose to $8.6bn in 2025, while April 2026 alone recorded almost $10bn in market supply.
Nigeria’s external reserves also increased significantly to $50bn as of March 2026, compared to about $33bn in 2023.
The ratings agency attributed the improvement to stronger current account balances, reduced import demand, fuel subsidy removal and increased domestic refining capacity.
S&P also acknowledged recent fiscal reforms introduced by the Federal Government, especially Executive Order 9 signed in February 2026 directing the Nigerian National Petroleum Company Limited to remit more petroleum revenues into the Federation Account.
According to the report, government revenue is expected to rise to 12.4 per cent of GDP in 2026 from 7.3 per cent recorded in 2023.
The agency projected that oil production would average 1.66 million barrels per day in 2026 while inflation is expected to decline from 23 per cent in 2025 to 17.7 per cent in 2026.
Real GDP growth is also projected to settle at 3.7 per cent after Nigeria recorded four per cent growth in 2025.
Since assuming office in October 2023, Cardoso has overseen major reforms aimed at rebuilding confidence in the financial system and stabilising the naira.
At the time, Nigeria faced rising inflation, severe foreign exchange shortages and over $7bn in unmet FX obligations.
To address the crisis, the Monetary Policy Committee raised the Monetary Policy Rate by 875 basis points to 27.5 per cent in 2024 to combat inflation and restore macroeconomic stability.
The CBN also introduced reforms to unify exchange rates, clear FX backlogs and improve transparency within the foreign exchange market.
Part of the reforms included the launch of the Electronic Foreign Exchange Matching System designed to improve price discovery and reduce market distortions.
The apex bank later unveiled the Nigeria Foreign Exchange Code to strengthen accountability, ethics and transparency within the FX market.
Cardoso described the initiative as a major step toward eliminating opaque practices.
“The FX Code represents a decisive step forward, setting clear and enforceable standards for ethical conduct, transparency, and good governance in our foreign exchange market,” he said.
“The era of opaque practices is over.”
Global ratings agency Fitch also praised Nigeria’s reforms, including exchange rate liberalisation, tighter monetary policies and efforts to end deficit financing.
According to Fitch, the reforms have “improved policy coherence and credibility and reduced economic distortions and near-term risks to macroeconomic stability.”
Reacting to the latest upgrade, Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the decision by S&P, alongside positive assessments by Fitch and Moody’s, reflects growing international confidence in Nigeria’s reform agenda.
“These independent assessments collectively affirm that the difficult but necessary reforms undertaken under the leadership of President Bola Ahmed Tinubu are yielding measurable results,” Oyedele stated.
He added that the government remains committed to prudent fiscal management, macroeconomic stability and structural reforms aimed at attracting investment and supporting inclusive growth.
“We are focused on addressing inflationary pressures, improving food security, expanding decent job opportunities, and ensuring that economic growth translates into meaningful and inclusive prosperity for all Nigerians,” he said.
Cardoso’s reforms have also earned continental recognition after he was recently named African Central Bank Governor of the Year by the African Banker Awards Committee.
The organisers praised his “bold and strategic” leadership in implementing reforms that restored confidence and stability in Nigeria’s financial system.
