Nigeria today secured a major boost in global investor confidence as S&P Global Ratings upgraded the country’s sovereign credit rating to ‘B’ from ‘B-’, citing improvements in macroeconomic stability, foreign exchange reforms and stronger oil sector performance.
The global rating agency also retained a stable outlook for the country, indicating confidence in the sustainability of ongoing economic reforms by the Federal Government.
In its latest rating action released yesterday, S&P said the upgrade reflected Nigeria’s improved external position, rising foreign exchange reserves, higher oil production and stronger fiscal revenue generation.
The agency specifically highlighted the impact of the 2023 exchange rate liberalisation policy and increased domestic refining capacity led by the Dangote Industries Limited refinery.
According to S&P: “Following three years of sustained structural reforms, Nigeria’s creditworthiness has improved. Most notably, the liberalisation of the exchange rate has bolstered access to foreign currency and enabled a market-driven exchange-rate environment.”
The agency stated that reforms in the oil and fiscal sectors were gradually strengthening government finances and reducing debt pressure.
