November 17, (THEWILL) — Standard & Poor’s (S&P) has revised Nigeria’s sovereign credit outlook from “stable” to “positive”, signalling growing confidence in the country’s economy. While Nigeria’s long- and short-term ratings remain at B-/B,(the Long-term and Short-term ratings) upgrade reflects improvements in fiscal management, foreign reserves, and economic reforms.
S&P highlighted key drivers of optimism:
Economic reforms: Liberalisation of the exchange rate, subsidy removal, and stronger revenue collection.
Improved external position: Foreign reserves are stabilising, and the naira is showing more confidence.
Oil sector gains: Rising production and the operational Dangote Refinery add value to the economy.
Stronger growth outlook: Average GDP growth projected at 3.7% per year through 2028.
Inflation and fiscal discipline: Inflation expected to gradually ease to around 13% by 2028; fiscal deficits projected at about 3.2% of GDP.
Government officials welcomed the upgrade as validation of ongoing reforms. Finance Minister, Wale Edun, and CBN Governor, Olayemi Cardoso, emphasised continued coordination of fiscal and monetary policies to maintain macroeconomic stability.
Analysts describe the upgrade as Nigeria’s most positive economic outlook in a decade, with potential benefits including:
-Greater investor confidence and easier access to international financing
– Stabilisation of the naira and inflation
– Increased foreign investment in oil, infrastructure, and other sectors
– Stronger prospects for long-term sustainable growth
However, S&P cautioned that risks remain, including high debt servicing costs, poverty, dependence on oil revenues, and the need to sustain reform momentum.
Despite these challenges, the positive outlook marks a significant vote of confidence in Nigeria’s economic trajectory and positions the country for potentially stronger growth in the coming years.
Ogochukwu Onwaeze
