S&P Global Ratings has upgraded the long-term ratings of seven Nigerian banks, reflecting growing confidence in the country's banking sector amid ongoing economic reforms and successful recapitalisation efforts.
Rating Upgrades for Major Banks
The agency 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 from 'B-' to 'B', all with stable outlooks. Additionally, Fidelity Bank Plc and First City Monument Bank Plc saw their outlooks revised to positive from stable, while their ratings remained at 'B-/B'. S&P also upgraded national scale ratings for nine financial institutions, including Guaranty Trust Holding Company Plc.
Impact of Economic Reforms
The upgrades follow S&P's recent decision to raise Nigeria's sovereign credit rating from 'B-' to 'B', driven by improvements in the macroeconomic environment. The agency noted that foreign exchange reforms and exchange rate liberalisation have enhanced dollar access and restored investor confidence. These measures have fostered a more market-driven foreign exchange system and supported non-oil sector growth.
Growth and Inflation Outlook
Nigeria's economy expanded by 4.0% in 2025, supported by stronger crude oil production and non-oil sector performance. Although inflationary pressures persist, S&P expects inflation to average 17.7% in 2026 and decline below 10% by 2028. The agency highlighted Nigeria's relative insulation from external shocks due to its net oil exporter status and the operational full capacity of the Dangote Refinery at 650,000 barrels per day.
Profitability and Capital Strength
S&P projects that Nigerian banks will remain profitable in 2026, with return on equity between 20% and 23%, driven by strong interest income and improved earnings. The recapitalisation efforts in response to the Central Bank of Nigeria's new capital requirements—N500 billion for international banks and N200 billion for national banks—were acknowledged. Access Bank, UBA, and Zenith Bank were noted for successful capital raises and international diversification, while GTBank received praise for stronger capitalisation and risk management.
The rating upgrades are expected to bolster the global reputation of Nigerian banks and improve their access to foreign funding as investor confidence in Nigeria's reform agenda continues to rise.
