S&P upgrades Nigeria’s economic outlook over Tinubu’s removal of fuel subsidy, other reforms

S&P Global Ratings has upgraded Nigeria’s credit outlook to stable from negative, citing President Bola Tinubu’s economic reforms in the country. 

The agency also scores Africa’s largest economy at ‘B-/B’, according to a statement on Friday. 

The improved outlook comes after Mr Tinubu removed subsidies on petrol, otherwise known as Premium Motor Spirit, and overhauled the country’s exchange rate policies through the Central Bank of Nigeria. 

“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,” analysts Ravi Bhatia, Samira Mensah and Juili Pargaonkar said for the agency in the statement.

Following the removal of the fuel subsidy, Mr Tinubu, on Monday, announced that his government has saved over N1 trillion in just two months of scrapping the costly subsidy.

Investors have continued to welcome the reform of the new government….