S&P Global Ratings don upgrade Nigeria sovereign credit rating from B- to B, the first upgrade for 14 years. The main reason na Aliko Dangote $20 billion refinery wey dey near Lagos. The agency talk say the refinery don become stabilising force for the economy.
The refinery wey dey produce 650,000 barrels per day don help reduce fuel import, strengthen foreign exchange reserves, and improve current account position. S&P say the refinery dey shield Nigeria from supply shocks wey Middle East conflict cause.
S&P say domestic supply from Dangote refinery dey ensure availability of refined fuel, gas, and fertiliser for Nigerian market. The agency talk say this provide buffer against global and regional supply constraints.
S&P upgrade also affect seven Nigerian banks: Access Bank, Bank of Industry, Guaranty Trust Bank, Stanbic IBTC Bank, Standard Chartered Bank Nigeria, United Bank for Africa, and Zenith Bank. The agency raise their long-term ratings to B from B- with stable outlook.
Fidelity Bank and First City Monument Bank get positive outlook revision. S&P say the upgrade follow Nigeria sovereign rating upgrade wey reflect sustained structural reforms and improved foreign exchange market conditions.
Dangote Group President Aliko Dangote announce say the refinery dey target September 2026 for Initial Public Offering. He say investor demand don reach billions of dollars. First HoldCo Chairman Olufemi Otedola promise to buy $100 million shares for the refinery.
S&P warn say inflation remain major challenge, but expect price pressures to fall below 10% by 2028. The agency also note say poverty don rise sharply to 50% of population from 30% before 2020. About 31 million Nigerians dey face food insecurity now.
Ongoing rehabilitation work for Port Harcourt, Warri, and Kaduna refineries fit further strengthen Nigeria refining capacity and balance of payments for coming years. S&P say Nigeria don spend nearly $10 billion annually for fuel import before this refinery come.
S&P project nominal lending growth for 2026 go remain strong at about 25%, driven by oil and gas, agriculture, and manufacturing. But real lending growth go remain weak due to inflation and high interest rates. Non-performing loan ratio go stabilise at 6%-7% for 2026.
Bola Ahmed Tinubu Ideological Group Convener Bamidele Atoyebi describe the upgrade as greatest birthday gift for President Tinubu. He say Nigeria don gradually reclaim global respect and economic stability.
Do you have a news tip for NNN? Please email us at editor @ nnn.ng
