Nigeria’s credit rating rises after major fiscal and FX reforms
Nigeria’s recent fiscal and foreign exchange reforms have led to an upgrade in the country’s sovereign credit rating. International agencies, including S&P Global Ratings and Fitch Ratings, have cited improvements in external reserves, FX liquidity, and macroeconomic stability as key factors. Olayemi Cardoso, Governor of the Central Bank of Nigeria, has overseen several reforms aimed at restoring confidence in the financial system. The reforms have also attracted recognition from industry stakeholders and awards committees.
TLDR
- S&P Global Ratings upgraded Nigeria’s long-term sovereign credit ratings from ‘B-’ to ‘B’ with a stable outlook, citing improved macroeconomic conditions and ongoing reforms.
- Average monthly FX turnover increased to $8.6bn in 2025, with nearly $10bn recorded in April 2026; external reserves rose to $50bn as of March 2026, up from approximately $33bn in 2023.
- Executive Order 9, signed in February 2026, mandates the Nigerian National Petroleum Company Limited to remit a larger share of petroleum revenues directly into the Federation Account.
- The CBN introduced an Electronic Foreign Exchange Matching System and the Nigeria Foreign Exchange Code in 2024 to improve transparency and governance in the FX market.
- Olayemi Cardoso was named African Central Bank Governor of the Year by the African Banker Awards Committee, recognising his leadership in implementing reforms at the CBN since 2023.
