May 21, (THEWILL) — Improving macroeconomic conditions and ongoing economic reforms have continued to strengthen confidence in Nigeria’s financial system, prompting S&P Global Ratings to upgrade the long-term global scale ratings of seven Nigerian banks from ‘B-’ to ‘B’.
The upgraded institutions are Access Bank Plc, Bank of Industry, Guaranty Trust Bank Ltd., Stanbic IBTC Bank Plc, Standard Chartered Bank Nigeria Ltd., United Bank for Africa Plc and Zenith Bank Plc, all of which were assigned stable outlooks.
S&P also revised the outlooks of Fidelity Bank Plc and First City Monument Bank Plc to positive from stable, while affirming their ratings at ‘B-/B’.
According to the rating agency, the actions followed its recent upgrade of Nigeria’s sovereign credit rating to ‘B’ from ‘B-’, reflecting significant improvements in the country’s macroeconomic fundamentals after years of policy reforms.
S&P noted that exchange rate liberalisation and improved foreign exchange liquidity had restored investor confidence, supported non-oil sector growth and created a more market-driven economy.
The agency said Nigeria’s economy expanded by 4.0 percent in 2025, driven largely by improved crude oil production and stronger non-oil sector activity.
Although inflationary pressures may weigh on growth in 2026, S&P believes Nigeria is better positioned to manage external shocks due to increased domestic refining capacity at Dangote Petroleum Refinery and Petrochemicals.
Inflation is projected to average 17.7 percent in 2026 before easing below 10 percent by 2028 as reforms deepen and monetary tightening continues.
S&P also expressed confidence in the resilience of Nigeria’s banking sector, projecting that lenders will remain profitable despite elevated credit risks. The agency highlighted strong capital positions, successful recapitalisation efforts and expanding regional operations among major banks.
The latest upgrades are expected to improve Nigerian banks’ access to international funding and further reinforce investor confidence in the country’s reform-driven economic recovery.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
