S&P says Nigeria faces a ratings gap too wide to close by 2029
Nigeria’s ambition to regain investment-grade credit status by 2029 may be overly optimistic, as the country faces a significant ratings gap that could take longer than three years to bridge, according to S&P Global Ratings. The post S&P says Nigeria faces a ratings gap too wide to close by 2029 appeared first on Nairametrics .
S&P Global Ratings has warned that Nigeria's goal of achieving investment-grade credit status by 2029 may be unrealistic, as the country faces a considerable ratings gap that could take more than three years to close. Samira Mensah, Managing Director for Research and Analytics in Africa at S&P, stated in Lagos that the agency had not witnessed any sovereign credit rating improvement from a single-B credit rating to investment grade within three years.
Nigeria is currently rated B with a stable outlook, five notches below investment grade, with Fitch and Moody's also rating the country five and six levels below investment grade, respectively. While S&P acknowledged the Nigerian government's efforts to improve the country's economic and fiscal position, including policy changes and reforms since President Bola Tinubu took office in May 2023, Mensah emphasized that sustained economic improvements should be prioritized over a specific credit rating target.
The reforms aim to enhance fiscal sustainability, reduce economic distortions, and bolster the country's capacity to fulfill its financial obligations. S&P will provide its next assessment of Nigeria's creditworthiness on Friday.
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