S&P revises Nigeria’s outlook to stable on Tinubu’s fiscal reforms

S&P Global Ratings on Friday revised its outlook on Nigeria to stable from negative against the backdrop of the fiscal reforms initiated by President Bola Tinubu.

The agency also affirmed its rating for Africa’s largest economy at ‘B-/B’, citing the various institutional reforms that could drive growth and economic development.

“Nigeria’s newly elected government has moved quickly to implement a series of fiscal and monetary reforms, which we believe will gradually benefit public finances and the balance of payments,” the ratings agency said in a statement on Friday.

In July, S&P’s sovereign analyst, Frank Gill, said that the ratings agency was closely watching Nigeria ahead of its review because the recent reforms attracted positive signals.

Earlier in February, the rating agency had maintained Nigeria’s credit rating at “B-/B” but changed its outlook to “negative”. Later in May, another rating agency, Fitch, affirmed the country at ‘B-‘.