- S&P Global Ratings has upgraded seven Nigerian banks, boosting confidence in Nigeria’s banking sector
- Nigeria’s economic reforms led to improved sovereign credit rating and foreign investment access
- Estimated return on equity for Nigerian banks remains strong, projected between 20-23% by 2026
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigeria’s banking sector has received a major confidence boost after leading global rating agency S&P Global Ratings upgraded the long-term ratings of seven Nigerian banks following the country’s improving economic outlook and ongoing banking reforms.
The latest rating action comes amid renewed optimism over Nigeria’s financial system after sweeping reforms introduced by the Central Bank of Nigeria and the successful recapitalisation drive across the banking industry.
Credit: Novatis
Source: UGC
Seven major ganks get rating upgrade
S&P raised the long-term global scale ratings of seven Nigerian financial institutions to ‘B’ from ‘B-’, while assigning them stable outlooks.
The banks affected by the upgrade include Access Bank Plc, Bank of Industry, Guaranty Trust Bank Ltd., Stanbic IBTC Bank Plc, Standard Chartered Bank Nigeria Ltd., United Bank for Africa Plc and Zenith Bank Plc.
The agency also revised the outlooks of Fidelity Bank Plc and First City Monument Bank Plc to positive from stable, while retaining their ratings at ‘B-/B’.
In addition, S&P upgraded the national scale ratings of nine financial institutions, including Guaranty Trust Holding Company Plc, according to a report by Leadership.
Nigeria’s economic reforms driving confidence
According to S&P, the rating upgrades followed its recent decision to raise Nigeria’s sovereign credit rating from ‘B-’ to ‘B’ after improvements in the country’s macroeconomic environment.
The agency noted that foreign exchange reforms and exchange rate liberalisation have significantly improved access to dollars and restored confidence among investors and businesses.
S&P said the reforms have helped Nigeria build a more market-driven foreign exchange system, while also supporting stronger growth outside the oil sector.
“The upgrade reflects that ongoing reforms have improved Nigeria’s macroeconomic profile, which should help to gradually strengthen its growth prospects,” the agency stated.
Growth outlook improves despite inflation pressure
Nigeria’s economy expanded by 4.0 per cent in 2025, according to S&P, driven by stronger crude oil production and better performance in non-oil sectors.
Although inflationary pressures remain a concern, the agency expects inflation to gradually ease over the coming years, projecting it to average 17.7 per cent in 2026 before falling below 10 per cent by 2028.
S&P added that Nigeria is relatively protected from external shocks because of its status as a net oil exporter and the operational strength of the Dangote Refinery, which has reportedly reached its full 650,000 barrels-per-day refining capacity.
Banks are expected to stay profitable
The rating agency expressed confidence in the resilience of Nigerian banks despite economic pressures.
It is projected that the sector will remain profitable in 2026, with return on equity expected to stay between 20 and 23 per cent, supported by strong interest income and improved earnings.
S&P also acknowledged the recapitalisation efforts of banks responding to the CBN’s new capital requirements, which mandate a minimum capital base of N500 billion for international banks and N200 billion for national banks.
Credit: Novatis
Source: Getty Images
Among the strongest performers, S&P highlighted Access Bank, UBA and Zenith Bank for their successful capital raises and international diversification, while GTBank earned praise for stronger capitalisation and improved risk management.
The latest upgrades are expected to strengthen the global reputation of Nigerian banks and improve their access to foreign funding as investor confidence in Nigeria’s reform agenda continues to rise.
Three Nigerian tier-1 banks lose ₦2.13 billion
Legit.ng earlier reported that Nigeria’s push toward a cashless economy is delivering faster payments and stronger digital banking growth, but it is also creating bigger opportunities for fraudsters.
Three of the country’s biggest lenders recorded a combined ₦2.13 billion in fraud and forgery losses in 2025, according to an analysis of their audited financial statements.
The development comes as the Central Bank of Nigeria (CBN) intensifies anti-fraud regulations across the financial system, warning banks and customers alike to strengthen transaction security.
Source: Legit.ng