S&P Upgrades Seven Nigerian Banks, Signals Strong Sector Outlook
By Aboki Forex —
Global rating agency S&P Global Ratings has upgraded the long-term ratings of seven Nigerian banks, giving a major boost to confidence in the country’s banking sector. The move follows improvements in Nigeria’s economic outlook and ongoing banking reforms.
S&P raised the long-term global scale 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 to ‘B’ from ‘B-’. The agency assigned a stable outlook to all seven.
The rating agency also revised the outlooks of Fidelity Bank Plc and First City Monument Bank Plc to positive from stable. It kept 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 S&P, the upgrades followed its recent decision to raise Nigeria’s sovereign credit rating from ‘B-’ to ‘B’. The agency cited improvements in the country’s macroeconomic environment. It noted that foreign exchange reforms and exchange rate liberalisation have improved access to dollars and restored investor confidence.
“The upgrade reflects that ongoing reforms have improved Nigeria’s macroeconomic profile, which should help to gradually strengthen its growth prospects,” S&P stated.
Nigeria’s economy grew by 4.0 per cent in 2025, driven by stronger crude oil production and better performance in non-oil sectors. S&P expects inflation to ease gradually, averaging 17.7 per cent in 2026 and falling below 10 per cent by 2028.
The agency added that Nigeria is relatively protected from external shocks due to its status as a net oil exporter and the operational strength of the Dangote Refinery, which has reached its full 650,000 barrels-per-day capacity.
S&P expressed confidence in the resilience of Nigerian banks. It projected that the sector will remain profitable in 2026, with return on equity expected to stay between 20 and 23 per cent. Strong interest income and improved earnings will support this performance.
The rating agency also acknowledged the recapitalisation efforts of banks responding to the Central Bank of Nigeria’s new capital requirements. These mandate a minimum capital base of N500 billion for international banks and N200 billion for national banks.
Among the strongest performers, S&P highlighted Access Bank, UBA, and Zenith Bank for their successful capital raises and international diversification. GTBank earned praise for stronger capitalisation and improved risk management.
The 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.
In a related development, 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 N2.13 billion in fraud and forgery losses in 2025, according to an analysis of their audited financial statements. The Central Bank of Nigeria is intensifying anti-fraud regulations across the financial system.