S&P Global Ratings raised its long-term global-scale ratings on seven Nigeria-based financial institutions after upgrading Nigeria itself, saying the sector should remain profitable as improving macro conditions and a stronger foreign-exchange backdrop support credit quality.
The agency upgraded Access Bank, Bank of Industry, GTBank, Stanbic IBTC Bank, Standard Chartered Bank Nigeria, UBA and Zenith Bank to B from B-, while assigning stable outlooks. It also raised national-scale ratings on nine institutions and shifted the outlooks on Fidelity Bank and FCMB to positive from stable.
Capital and Profitability
S&P said Nigerian lenders are still benefiting from high interest margins, robust net interest income and slightly lower provisions, even as average profitability is expected to moderate in 2026. It sees average return on equity easing to 20% to 23% from about 25% in 2025, while return on assets slips marginally to 3.0% to 3.1%.
The rating company also noted that most banks have now met the Central Bank of Nigeria’s new paid-up capital requirements after successful capital raises over the past two years. That has improved sector capitalization, though a few lenders still face pressure and will need to strengthen solvency further.
Bank-by-Bank View
S&P said Access Bank’s large domestic franchise and African diversification support its profile, with asset quality improving as exposure to higher-risk markets falls. Zenith Bank’s strong efficiency and profitability were also cited, alongside the impact of its 2025 capital raise and a broadly stable non-performing-loan ratio.
UBA’s rating reflects its regional diversification and second-place domestic position, while GTBank’s profile was lifted by stronger capitalization and a proactive cleanup of forbearance exposures. Stanbic IBTC’s ratings continue to reflect its strategic importance to Standard Bank Group, and Standard Chartered Bank Nigeria’s upgrade tracks the sovereign move rather than a separate positive outlook call.
Operating Environment
S&P kept the banking-sector industry risk trend stable but moved the economic risk trend to positive, citing better macroeconomic conditions, firmer FX stability and ongoing reforms. It said these changes should gradually reduce credit risk and improve resilience across the system.
That still leaves Nigeria in the riskiest bracket of S&P’s banking industry country risk assessment, but the tone of the report suggests the agency sees less stress ahead than it did before the sovereign upgrade.
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