Nigeria’s economic reform drive has received a major boost after S&P Global Ratings revised the country’s outlook from stable to positive, reflecting improving policy momentum and prospects for fiscal consolidation. The agency said the shift was driven by recent government measures aimed at stabilizing public finances and strengthening long-term growth.
S&P noted that reforms in the foreign exchange market, efforts to reduce fuel subsidies, and moves to broaden the tax base are beginning to restore investor confidence. The ratings agency also highlighted that improved revenue collection and tighter monetary policies are contributing to greater macroeconomic stability.
“We are encouraged by the direction of Nigeria’s economic reforms and the government’s commitment to strengthening fiscal resilience,” S&P said in its assessment, as reported by Bloomberg.
Analysts believe the revised outlook could support stronger capital inflows and lower borrowing costs if reform implementation continues. However, they also caution that risks remain, particularly around inflation and external pressures.
With the outlook now upgraded to positive, Nigeria stands a stronger chance of securing a future rating upgrade should reform gains deepen over the next 12 to 18 months.
