Global ratings agency, S&P Global, has upgraded the long-term ratings of several Nigerian financial institutions following the recent improvement in Nigeria’s sovereign credit rating.
The agency upgraded the ratings of 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 from ‘B-’ to ‘B’, with stable outlooks assigned to the institutions.
S&P also revised the outlooks on Fidelity Bank Plc and First City Monument Bank Plc from stable to positive while affirming their current ratings.
According to the agency, the upgrades followed its decision on May 15, 2026, to raise Nigeria’s sovereign credit rating from ‘B-’ to ‘B’ with a stable outlook, citing ongoing economic reforms and improved foreign exchange market conditions.
S&P said the liberalisation of the foreign exchange market had improved access to foreign currency and encouraged a more market-driven exchange rate system.
The ratings agency noted that Nigeria’s real Gross Domestic Product grew by four per cent in 2025, driven by stronger oil production and growth in the non-oil sector.
It projected that the Nigerian banking sector would remain profitable in 2026, with average return on equity expected to range between 20 and 23 per cent.
“We expect the Nigerian financial sector will remain profitable and continue to perform well in coming quarters,” the agency stated.
S&P added that most Nigerian banks had complied with the Central Bank of Nigeria’s new minimum capital requirements after raising fresh capital over the last two years.
The agency, however, warned that inflation, high interest rates and the removal of regulatory forbearance could continue to pressure asset quality in the banking sector.
It projected that non-performing loans in the industry would stabilise between six and seven per cent in 2026.
Meanwhile, President of Dangote Group, Aliko Dangote, disclosed that the Dangote Refinery was targeting a September 2026 launch for its Initial Public Offering.
Dangote said investor demand for shares in the refinery had already reached billions of dollars under the ongoing private placement arrangement.
He described the refinery as one of Africa’s most strategic industrial investments, adding that it was projected to account for about 10 per cent of America’s refining capacity.
Chairman of First HoldCo, Olufemi Otedola, also praised Dangote’s achievements and pledged to personally acquire $100 million worth of shares in the refinery.
The planned IPO is expected to widen ownership of the refinery among Nigerians and institutional investors as the company positions itself as a major player in the global refining.
