Cardoso’s Financial Sector Reforms Instrumental To Fitch Upgrade Of Nigeria’s Credit Rating—Standard Chartered Bank

Standard Chartered Bank has hailed the Governor of the Central Bank of Nigeria, Mr Olayemi Cardoso, for his transformative policies in the financial sector, which have repositioned the Nigerian economy on the path of sustainable growth.

Standard Chartered, in a letter to the apex bank governor dated April 15, 2025, and signed by the Group Chief Executive, Bill Winters, said that Cardoso’s financial sector reforms have been instrumental to Fitch’s upgrade of Nigeria’s credit rating.

Fitch Ratings had last week upgraded Nigeria’s outlook to Stable from Negative, highlighting renewed confidence in the government’s commitment to far-reaching policy reforms.

While Nigeria’s long-term foreign currency rating remains at ‘B’, Fitch said the economic direction taken since mid-2023 is starting to bear fruit.

In the Standard Chartered Bank letter to the CBN Governor obtained by THE WHISTLER, Winters said the upgrade is a direct reflection of the transformational reforms the Nigerian government has embarked upon since the administration of President Bola Tinubu took office in May 2023.

He said that under the leadership of Cardoso as Governor of the CBN, the business community and financial markets have witnessed significant positive reforms that have transformed the economy and markets and placed growth on a sustainable upward path.

The rating upgrade, he stated further, is more remarkable as it comes at a time of great uncertainty over the global economy, further underscoring the strong confidence and conviction in Nigeria’s economic outlook.

As Sovereign Rating Advisor to the Nigerian Government for over a decade, the Standard Chartered Bank boss said the bank is honoured to have worked alongside Cardoso to make this upgrade a reality.

He expressed appreciation for all the support that the CBN, under Cardoso, has afforded the bank and assured of continued partnership that would boost the Nigerian economy.

The letter reads in part, “I write to congratulate you on behalf of Standard Chartered Bank on the recent upgrade of Nigeria’s Sovereign Credit Rating to B with a stable outlook by Fitch Ratings.

“The upgrade is a direct reflection of the transformational reforms the Nigerian government embarked upon when the administration took office in May 2023.

“Under your leadership as Governor of the CBN, the business community and financial markets have witnessed significant positive reforms that have transformed the economy and markets and placed growth on a sustainable upward path.

“The rating upgrade is all the more remarkable in that it comes at a time of great uncertainty over the global economy, further underscoring the strong confidence and conviction in Nigeria’s outlook.

“As Sovereign Rating Advisor to the Nigerian Government for over a decade, we are honoured to have worked alongside you to make this upgrade a reality. We appreciate all the support CBN has afforded us and hope that you have found our contributions helpful.

“As always, we remain committed to supporting Nigeria in its work to consolidate the gains from its ongoing reform programme to achieve further sovereign rating upgrades for the benefit of the entire nation.”

Key reforms such as exchange rate liberalisation, tighter monetary policy, removal of fuel subsidies, and an end to deficit monetisation have improved macroeconomic credibility, reduced distortions, and enhanced resilience to shocks.

A key turning point for the Nigerian economy was the Central Bank of Nigeria’s introduction of a new FX matching platform and FX code in 2024 to enhance price discovery and transparency.

Following a 40 per cent naira depreciation last year, these reforms helped narrow the official-parallel market gap and boosted FX liquidity.

Net FX inflows through official and autonomous channels surged by 89 per cent in Q4 2024, compared to an 8 per cent rise the previous year.

However, Fitch expects modest depreciation in the short term, particularly as external risks mount.

Gross reserves climbed to $41bn by end-2024, before easing to $38bn due to external debt servicing, including a $1.1bn Eurobond repayment due in November.

Nigeria’s current account recorded a $6.8bn surplus in 2024 (6.6 per cent of GDP), aided by FX formalisation and reduced import costs.

Net external reserves stand at about $23bn, and the CBN has reduced its reliance on FX swaps, with such liabilities now just 14 per cent of gross reserves, down from 25 per cent in November last year.

Cardoso’s Financial Sector Reforms Instrumental To Fitch Upgrade Of Nigeria’s Credit Rating—Standard Chartered Bank is first published on The Whistler Newspaper