According to S&P, the rating reflects Afreximbank’s growing strategic importance, robust enterprise risk profile and expanding role as a countercyclical institution supporting African economies through periods of global and regional uncertainty.

The ratings agency highlighted the Bank’s strong policy relevance and shareholder support, underscoring its critical role in advancing intra-African trade, supporting implementation of the African Continental Free Trade Area (AfCFTA), and developing transformative platforms and solutions that strengthen regional integration and economic resilience.

S&P noted that Afreximbank’s strong track record of delivering on its mandate underscores its strategic importance. “Afreximbank’s policy relevance has improved in recent years, as demonstrated by significant lending growth and shareholder support through a growing capital base supported by capital injections. Between 2015 and 2025, total assets expanded to $42.3 billion from $7.1 billion, supported by shareholders’ equity increasing to $8.4 billion from $1.3 billion.”

Commenting on the rating, Dr. George Elombi, president and chairman of the Board of Directors of Afreximbank, said:

“This rating is a strong endorsement of Afreximbank’s financial strength, stability, and international credibility, and a clear affirmation of its strategic importance to, and impact across, Global Africa. It reflects the Bank’s solid capital base, strong liquidity, the quality of its assets, and, in particular, the unwavering belief in the institution by African states and authorities. The events of recent years, and the last two years in particular, underscore a central lesson: much as the struggle for independence, the pursuit of Africa’s economic change will not be handed to us. It demands a deliberate, bold, courageous and decisive action by the continent itself, working with its diaspora.”

S&P Global Ratings also referenced Afreximbank’s role in responding to major external shocks affecting African economies.

These include the Bank’s support during the global financial crisis, the commodity price downturn, the COVID-19 pandemic, the Russia-Ukraine conflict and other periods of heightened global uncertainty.

Backing this trend the Bank recently announced a US$10 billion Gulf Crisis Response Programme (GCRP) to shield African and Caribbean economies from Middle East Conflict shocks.

Afreximbank has continued to strengthen the systems required to support African trade and investment, including the Pan-African Payment and Settlement System, the Africa Trade Gateway, the AfCFTA Adjustment Fund, trade finance facilities, project finance, institutional support and advisory services.

The Stable Outlook reflects S&P Global Ratings’ view of Afreximbank’s strengthened role as a countercyclical lender in Africa, ongoing shareholder support and consecutive capital increases.

Afreximbank remains focused on delivering its mandate to transform the structure of African trade by supporting industrialisation, expanding intra-African trade, strengthening regional value chains and increasing Africa’s participation in global trade.

The post S&P Affirms Afreximbank’s Investment-Grade Status with ‘BBB+/A-2’ Rating appeared first on Tech | Business | Economy.

Why?

The rating firm cited improvements in the country’s macroeconomic profile, external position, and ongoing economic reforms.

The US-based global ratings agency announced the upgrade on Friday while affirming Nigeria’s short-term ratings at “B” with a stable outlook.

According to S&P, higher oil production and prices, increased domestic refining capacity, and the liberalisation of the foreign exchange market in 2023 have strengthened Nigeria’s economic growth and balance of payments position.

“On May 15, 2026, S&P Global Ratings raised its long-term foreign and local currency sovereign credit ratings on Nigeria to ‘B’ from ‘B-‘ and affirmed our ‘B’ short-term ratings.

“At the same time, we raised our long- and short-term Nigeria national scale ratings on the sovereign to ‘ngA+/ngA-1’ from ‘ngBBB+/ngA-2’. The outlook is stable.,” the agency stated.

S&P said Nigeria’s improved creditworthiness followed “three years of sustained structural reforms,” particularly the liberalisation of the exchange rate, which it said had improved access to foreign currency and supported investor confidence.

The agency noted that reforms aimed at broadening the tax base and increasing petroleum revenue transfers to the Federal Government had also strengthened fiscal performance.

It projected that Nigeria’s debt-to-revenue ratio would decline to 338 per cent in 2026 from about 500 per cent in 2023.

The ratings agency said the Federal Government’s decision not to reintroduce fuel subsidies had helped prevent wider budget deficits and preserve foreign exchange liquidity.

However, it warned that rising fuel prices linked to global oil market pressures and the Middle East conflict were contributing to inflationary pressures ahead of the 2027 general elections.

S&P projected inflation to average 17.7 per cent in 2026 before declining to below 10 per cent by 2028.

The agency also highlighted the impact of the Dangote Refinery and increased domestic refining capacity on Nigeria’s economy, saying the development would strengthen the country’s current account position and reduce dependence on imported refined petroleum products.

It forecast Nigeria’s current account surplus to rise to 5.8 per cent of GDP in 2026 from 4.8 per cent in 2025.

The agency said the stable outlook reflected a balance between Nigeria’s improved external position and growth prospects and persistent structural challenges such as low tax revenue, inflation, poverty, unemployment, and security concerns.

“We expect President Bola Tinubu’s administration will continue to advance economic and fiscal reforms,” the report stated.

Reacting, Taiwo Oyedele, the minister of Finance and Coordinating Minister of the Economy, welcomed the rating and said it followed similar upgrades by Fitch Ratings and Moody’s in 2025.

In a post on X early Saturday, the minister said the positive ratings, now by the three global firms, reflected growing international confidence in the economic reforms implemented under Tinubu.

“These independent assessments collectively affirm that the difficult but necessary reforms undertaken under the leadership of President Bola Ahmed Tinubu, GCFR, are yielding measurable results and laying the foundation for a more stable, transparent, and resilient economy,” Oyedele said.

He said the positive ratings by S&P, Fitch, and Moody’s sent “a strong signal to global investors, development partners, financial markets, and the international business community that Nigeria is regaining macroeconomic credibility.”

The minister also reaffirmed the government’s opposition to the reintroduction of fuel subsidies, describing them as inefficient and fiscally distortive.

“We have maintained our position against the reintroduction of inefficient fuel subsidies which historically created significant fiscal distortions, incentivised smuggling, weakened foreign exchange liquidity, and diverted scarce public resources away from critical national priorities,” he said.

He acknowledged that challenges such as inflation, food insecurity, unemployment, and the need for inclusive growth still required urgent attention.

“While these positive ratings developments are encouraging, we recognise that the work ahead remains substantial,” he said.

The minister thanked Nigerians for their “resilience, patience, and support” throughout the reform process, expressing optimism that the improved ratings outlook would help attract investment and enable the country to secure financing on more favourable terms.

(Source: Punchng.com)

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