Fiscal, FX Reforms Lift Nigeria’s Credit Rating Amid Growing Investor Confidence

Nigeria’s ongoing fiscal and foreign exchange reforms have received a major boost following an upgrade of the country’s sovereign credit rating by global agency S&P Global Ratings, reflecting renewed investor confidence and improving macroeconomic stability.

The ratings agency upgraded Nigeria’s long-term foreign and local currency sovereign credit ratings from “B-” to “B” while maintaining a stable outlook. The development follows a series of economic reforms introduced by the Federal Government and the Central Bank of Nigeria aimed at stabilising the economy, improving transparency and restoring investor trust.

According to the report, stronger foreign exchange liquidity, rising external reserves, improved fiscal revenues and sustained structural reforms contributed significantly to the upgrade. The agency noted that reforms in the foreign exchange market under the leadership of Olayemi Cardoso have enhanced market confidence and improved access to foreign currency.

S&P disclosed that average monthly FX turnover increased to $8.6bn in 2025, while external reserves rose to $50bn as of March 2026 from about $33bn in 2023. The agency also attributed the improvement to increased domestic refining capacity, reduced import demand and the removal of fuel subsidies.

The report further projected that Nigeria’s 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.

Economic reforms implemented since 2023 include exchange rate liberalisation, tighter monetary policy, removal of fuel subsidies and the introduction of the Electronic Foreign Exchange Matching System to improve transparency in the FX market.

Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, described the ratings upgrade as evidence that the country’s difficult but necessary reforms are yielding measurable results.

The positive assessment comes as Nigeria continues efforts to strengthen fiscal discipline, attract foreign investment and improve long-term economic growth despite persistent domestic and global economic challenges.