S&P elevates Nigeria from B- to B in recent economic ratings, cites improving macroeconomic profile
Nigeria‘s economic outlook received a significant lift after S&P Global Ratings announced on May 15 that it had upgraded the country’s credit rating from B- to B, citing improving macroeconomic conditions and economic reforms. According to the ratings agency, stronger oil production, improvements in domestic refining capacity, and the decision to float the naira in 2023 have all contributed to bettering the countrys economic position. Nigerias credit improvement The S&P Global announcement mentioned that the main drivers for this upgrade were the Sub-Saharan countries rising crude oil production, higher oil prices, and an increase in their refining capacity. The decision to unpeg the countrys exchange rate made in 2023, ending decades of carefully managed currency pegs, was also mentioned as an important factor. “We expect Nigerias real GDP per capita to rise 1.4% on average per year until 2029, a significant improvement on the 1% yearly contraction, on average, over the past decade,” S&P said in its statement. S&P Global Ratings also noted that Nigeria is less exposed to the adverse economic effects of the conflict in the Middle East than many other countries in Sub-Saharan Africa, mainly because of its position as a major crude oil exporter. According to the agency, higher global oil prices
