Nigeria Credit Rating Upgrade 2026: FX Reforms and Fiscal Policies Drive S&P Boost
Nigeria’s economic reform drive has earned fresh global recognition after ratings agency S&P Global Ratings upgraded the country’s sovereign credit rating from “B-” to “B,” citing stronger fiscal management, improved foreign exchange liquidity, and rising investor confidence. The upgrade marks a significant shift in Nigeria’s macroeconomic outlook as reforms begin to reshape external stability and growth expectations.
According to the report, the decision reflects improvements in Nigeria’s external position, including higher oil production, increased domestic refining capacity, and a more liberalised FX market introduced in 2023. S&P also noted that Nigeria’s short-term rating was affirmed at “B” with a stable outlook, signalling cautious but steady confidence in the country’s economic direction.
A key driver of the upgrade was the ongoing foreign exchange reforms led by the Governor of the Central Bank of Nigeria, Olayemi Cardoso. Measures such as FX market unification, the introduction of electronic trading systems, and improved transparency have boosted liquidity, with monthly FX turnover rising sharply and external reserves climbing to around $50bn by early 2026. These reforms have also helped reduce distortions that previously discouraged investment and weakened the naira.
On the fiscal side, the Federal Government under President Bola Ahmed Tinubu has pushed policies aimed at strengthening revenue generation and reducing debt pressures. Inflation is projected to ease, growth is expected to improve, and Nigeria’s current account surplus is forecast to expand, reflecting gradual but steady macroeconomic recovery despite lingering structural challenges.
Reactions from policymakers have been largely positive, with Finance officials welcoming the upgrade as validation of ongoing reforms. Alongside S&P, Fitch Ratings has also acknowledged Nigeria’s policy shifts, while stakeholders say the progress signals improving global confidence in the economy. The reforms have also drawn wider recognition, including accolades linked to financial sector leadership and governance improvements, reinforcing expectations of continued economic stabilisation.
source: punch