Stanbic IBTC, Access, BOI, Others Get Grade ‘B’ S&P Rating Upgrade As Nigeria’s Credit Profile Rises
S&P Global, the world’s leading ratings agency, has upgraded the long-term ratings of seven Nigerian banks; Stanbic IBTC Plc, Access Bank Plc, Bank of Industry(BOI), Guaranty Trust Bank Ltd., Standard Chartered Bank Nigeria Ltd., United Bank of Africa Plc and Zenith Bank Plc.
The agency upgraded the ratings of these Nigerian banks to ‘B’ from ‘B-‘ ,following its recent upgrade of Nigeria’s sovereign credit rating, citing economic reforms, improved foreign exchange market conditions and stronger growth prospects for the country.
Stanbic IBTC Bank Plc is among the institutions recognised in what is shaping up to be a landmark moment for the bank.
S&P stated “We expect the Nigerian financial sector will remain profitable and continue to perform well in coming quarters. We forecast the average return on equity will normalise at 20 per cent to 23 per cent in 2026 compared to 25 per cent estimated for 2025, while return on assets will decline marginally to 3.0 per cent to 3.1 per cent from an estimated 3.3 per cent in 2025.”
The agency also said that“Profitability will be supported by still-high interest margins, growing net interest income, and slightly lower provisions. Most Nigerian banks are now compliant with the CBN’s new paid-up capital requirements after successful capital raises over the past two years, improving bank capitalisation overall.”
According to Stanbic IBTC, the upgrade affirms what the market has long known and the bank occupies a position of strength within Nigeria’s financial system. As a full-service financial institution with a formidable presence across banking, asset management, pension administration, insurance and investment services, Stanbic IBTC has consistently demonstrated the kind of financial discipline, risk management culture and capital adequacy that global rating agencies reward. The S&P upgrade now places that strength on the most visible stage possible.
Fidelity Bank Plc and First City Monument Bank Plc also received a boost, with S&P revising their outlooks from stable to positive while affirming their existing ratings.
The upgrades are a direct consequence of S&P’s May 15, 2026 decision to lift Nigeria’s sovereign credit rating to ‘B’ from ‘B’, a move the agency attributed to sustained structural reforms that have meaningfully improved the country’s macroeconomic standing. At the heart of those improvements is the liberalisation of the foreign exchange market, which has eased access to foreign currency, encouraged a market-driven exchange rate system and helped rebuild investor confidence while supporting growth outside the oil sector.
Tax reforms and greater centralisation of petroleum revenues have further strengthened government earnings, with S&P projecting a gradual reduction in the ratio of interest payments to government revenue over time.
Nigeria’s economy grew by four per cent in real terms in 2025, powered by an 8.5 per cent jump in oil production and a 3.9 per cent expansion in non-oil output. S&P projects a modest growth moderation in 2026 owing to inflationary pressures tied to the Middle East conflict, but maintained that higher government capital spending and continued CBN reforms should keep the economy on a resilient footing. Nigeria’s status as a net oil exporter and an emerging refined petroleum producer offers additional protection from the wider fallout of the crisis.
Nominal lending growth is expected to remain strong at around 25 per cent in 2026, led by activity in oil and gas, agriculture and manufacturing.
The agency however noted, that inflation and elevated interest rates continue to suppress real lending growth and that asset quality pressures will persist following the removal of regulatory forbearance measures.
On capital adequacy, the picture is encouraging. Most Nigerian lenders have now met the new minimum capital thresholds set by the CBN, which raised the requirement to N500 billion for internationally licensed banks and N200 billion for those on national licences, following a series of capital raises over the past two years.
Crude oil production is expected to average 1.66 million barrels per day in 2026. The Dangote Group’s 650,000 barrels-per-day refinery has also reached full operational capacity, strengthening domestic fuel supply and reducing Nigeria’s vulnerability to external supply shocks.
The agency identified inflation, poverty and weak purchasing power as the key constraints that will continue to test the economy’s momentum.
