•Dare: It’s big vote of confidence in Tinubu’s policy initiatives
•Positive rating will bode well for economy – Experts
The Minister of Finance and Coordinating Minister of the economy, Mr. Olawale Edun, yesterday hailed the upgrade of Nigeria’s credit outlook by Standard and Poor’s (S&P), saying it is an indication that the difficult but necessary reforms being implemented are enjoying strong recognition from respected global institutions.
His position was echoed by the Governor of Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso.
S&P announced the upgrade on Friday, citing improving policy coordination, strengthened monetary management and steps taken to restore confidence in the Nigerian economy.
Commenting on the development yesterday, Edun said the rating also shows that the country was earning strong recognition from respected global institutions.
He said: “I am delighted to receive the news that S&P Global Ratings has revised Nigeria’s outlook to Positive from Stable while affirming our ‘B-/B’ rating.
“This development is yet another clear signal that the difficult but necessary reforms we are undertaking are gaining traction and earning strong recognition from respected global institutions.
“Coming in the same year that Moody’s and Fitch Ratings each issued improved assessments of Nigeria’s credit position, S&P’s latest action means that all three of the world’s major ratings agencies now acknowledge the significant progress we are making.”
Edun said the alignment reflects tremendous confidence in the direction of the country’s fiscal, monetary, and structural reforms, and “in the renewed strength and stability of our economy”.
He said: “As S&P rightly noted, Nigeria’s reform programme is already beginning to yield benefits, with improved growth prospects, strengthening external buffers and clearer monetary policy outcomes.
“These positive signals reinforce our commitment to staying the course.
“While we are fully aware that more work lies ahead, the foundations we are building today will support inclusive and sustainable growth for years to come.”
Edun commended President Bola Tinubu for demonstrating unwavering leadership and political courage in advancing reforms “that had been delayed for far too long”.
He also acknowledged the resilience and patience of the Nigerian people, “whose understanding and support remain central to our success”.
The minister vowed that the country will continue to implement well-coordinated policies aimed at restoring macroeconomic stability, attracting investment, and creating opportunities for citizens.
He added that the confidence shown by global ratings agencies strengthens the country’s resolve to deliver a stronger, more dynamic, and more prosperous Nigerian economy.
In a separate statement yesterday, the CBN Governor Olayemi Cardoso welcomed the latest upgrading of Nigeria’s economic outlook by S&P Global Ratings from stable to positive.
Cardoso said the development reflected the steady progress recorded in stabilising key economic indicators since the beginning of the year.
The fresh rating means that Nigeria is viewed as standing a better chance of achieving stronger credit fundamentals over the medium term.
In effect, S&P now sees Nigeria as more likely to strengthen its economic and financial stability in the coming years, based on recent policy improvements, and the agency believes that Nigeria has a stronger chance of earning a future credit rating upgrade if the current reforms are sustained.
“This is encouraging news for the country. It shows that our efforts to restore stability, strengthen governance frameworks and rebuild trust in the financial system are being recognised internationally,” Cardoso said at a strategic session in Abuja.
The CBN Governor noted that the apex bank’s actions—ranging from tighter monetary policies to enhanced foreign exchange market operations—have contributed to clearer market signals and better investor confidence.
“The Central Bank has brought stability to the economy and become a beacon of hope,” he said.
Cardoso added that the improved outlook should motivate both public and private sector stakeholders to sustain ongoing reforms that support growth, investment, and long-term macroeconomic resilience.
Dare: What it means for Nigeria
Reacting to the development yesterday, the Special Adviser to the President on Media & Public Communication, Mr Sunday Dare, described the development as a big vote of confidence in the policy initiatives of President Bola Tinubu.
Dare gave his thoughts as follows:
“S&P is one of the world’s top three credit rating agencies.
“There are two things S&P can change: Credit Rating (e.g., B-, CCC+, BB); Credit Outlook (Positive, Stable, Negative).
“Positive Outlook” means Nigeria is now on track for a future upgrade
“When S&P moves a country’s outlook to positive, it signals the country’s economic reforms are working, fiscal conditions are improving, debt risks are easing and Investor confidence is rising
“That is a big vote of confidence.”
Dare wrote on X.
Sunday Dare,CON @SundayDareSD
Positive rating will bode well for economy – Experts
Expectedly, economic and financial experts who have reviewed the outcome of the S&P rating have stated that this will bode well for the economy, with positive rippled effect.
In a chat with The Nation last night, renowned economist and Founder, Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, said the new rating is very positive for the Nigerian economy.
According to him, “it positions Nigeria in good standing to attract both foreign portfolio and foreign direct investment. It is also good for the private sector as it makes it easier to attract capital.
“This is premised on the impact of the positive rating on Nigeria country risk and perception as an investment destination. It would also moderate insurance and interest costs generally.
“This rating is also a reflection of the progress that has been made with regards to current economic reforms.”
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Echoing similar sentiments, Mr Oladele Adeoye, Chief Operating Officer, DataPro, one of the foremost rating agencies in the country, said the development was something to cheer about.
While admitting that the positive outcome of the rating may not percolate to the average Nigerian just yet, Adeoye argued that it is a boost to the macro economy ultimately.
“You know, Nigerians’ understanding of economic improvement is that the average man on the street is able to buy something less than he or she was buying before now.
“But for the economic managers, it’s something to be excited about because when your outlook is improved from stable to positive by a rating agency, what that means is that there are indices that are being monitored by the rating agency, and that the country now has a high possibility of its long-term rating being increased from what it is as of now.
“So if not for anything, literally, what that means is that you are doing something that is exciting or that is reassuring to the rating agency, and that the improvement that they are monitoring is actually pushing you, economically speaking, towards your rating being improved.
“So for the economic managers, it’s something to be excited about. It means that if they put a little bit of effort into what they are doing currently, the rating of Nigeria will likely change.”
Pressed further, the DataPro chief, who tried to draw a correlation between rating and economic change, said: “Improved rating simply means that you can borrow cheaper as a country than you were doing presently. It means that your credit quality has improved as a country. And because your credit quality as a country has improved, investors are willing to lend you money.
“And when investors lend you money, your risk premium is priced lower than your counterparts that are borrowing from the same market. So from that point of view, what does that mean? That therefore means that Nigeria as a country can borrow at a cheaper rate, and you will not have to use all your revenue to be servicing your debts.
“And they can channel those funds, whether the ones gotten directly by way of borrowing or the portion of the revenue that is being used to service the debt.
“All of these can be combined together at this point in time and can be channeled to other aspects of the economy that can enable business and enhance productivity. And that is where it gets exciting.
“Where such an enabling environment can be created, it means that productivity will improve and that we have direct bearing on GDP. So that is the connection.
“So in one way, it is correct. We can now use money that has been used to service debts to now begin to channel them to improving infrastructures and creating an enabling business environment within our country.”
