S&P Global Ratings has upgraded Nigeria’s credit outlook to stable from negative, citing President Bola Tinubu’s economic reforms in the country. 

The agency also scores Africa’s largest economy at ‘B-/B’, according to a statement on Friday. 

The improved outlook comes after Mr Tinubu removed subsidies on petrol, otherwise known as Premium Motor Spirit, and overhauled the country’s exchange rate policies through the Central Bank of Nigeria. 

“Nigeria’s newly elected government has moved quickly to implement a series of fiscal and monetary reforms, which we believe will gradually benefit public finances and the balance of payments,” analysts Ravi Bhatia, Samira Mensah and Juili Pargaonkar said for the agency in the statement.

Following the removal of the fuel subsidy, Mr Tinubu, on Monday, announced that his government has saved over N1 trillion in just two months of scrapping the costly subsidy.

Investors have continued to welcome the reform of the new government. However, labour unions in the country have protested that the reforms, especially the increment in petrol price occasioned by the removal of subsidy, have led to astronomical hikes in the costs of food items and essential commodities.

In February, S&P had maintained Nigeria’s credit rating at ‘B-/B’ but changed its outlook to “negative.”

The debtor assessor sovereign analyst Frank Grill had said the rating agency was closely watching Nigeria ahead of its review on August 4, adding that recent reforms were positive signs.