S&P Global Ratings revised its outlook on Nigeria to “positive” from “stable” on Friday, backing the ongoing economic reforms.

It also affirmed the country’s rating at “B-/B”.

“In our view, the monetary, economic, and fiscal reforms being implemented by Nigerian authorities will yield positive benefits over the medium term.

“The growth outlook is improving, for both the hydrocarbon and nonhydrocarbon sectors.

“We have revised our outlook on Nigeria to positive from stable, based on the potential for continued gains, particularly in our external and monetary analysis.

“We also affirmed our ‘B-/B’ sovereign credit ratings on Nigeria,” S&P said in a statement.

It also affirmed that the ongoing economic reform policies being put in place by the current administration will eventually yield positive outcomes.

“The monetary, economic, and fiscal reforms being implemented by Nigerian authorities will yield positive benefits over the medium term.”

In 2023, President Bola Tinubu launched the boldest reforms in decades, scrapping the costly petrol subsidy and removing currency trading restrictions to spur growth and attract foreign investment.

Analysts have said that, if sustained, these reforms could support long-term economic expansion, though implementation hurdles and global oil price volatility still pose risks.

In May, Moody’s upgraded Nigeria’s rating by one notch to “B3” from “Caa1”, citing notable improvements in the country’s external and fiscal positions, while Fitch last month kept its “B” rating and “stable” outlook.

To bridge fiscal gaps, Nigeria has turned to debt markets. Last week, the country raised $2.35 billion through a Eurobond issuance to help finance its 2025 budget deficit, while continuing to borrow domestically. (Channels)