FITCH Upgrades Lagos, Three Other States To Stable

• Sanwo-Olu Thanks Lagosians, Promises More Action

Lagos state governor, Mr Babajide Sanwo-Olu has lauded Lagosians for their continued support, contributions to sustained economic growth and development of the state, which has led to improved rating of the state by international rating agency, the FITCH.

Lagos, the governor said “has got a clean bill of health on its economy – courtesy of Fitch Ratings”

Meanwhile, the inter- nationally renowned rating Agency has upgraded the Long-Term Foreign and Local-Currency Issuer Default Ratings (IDRs) of Lagos, Kaduna, Kogi, and Oyo states from ‘B-’ to ‘B’.

This is a big boost for investors’ confidence and a testimony to the strength of Governor Babajide Sanwo- Olu’s T.H.E.M.E.S Plus Agenda – the six-pillar economic plan of the Governor’s administration.

According to information posted on the Agency’s website, the outlook for all four states remains stable. The rating follows the upgrade of Nigeria’s sovereign rating to ‘B’ from ‘B-’ on April 11, 2025, reflecting improved macroeconomic stability and policy reforms.

Fitch, in line with its rating criteria, mirrored the sovereign upgrade in the affected States, given the predominant role of the federal government in Nigeria’s intergovernmental fiscal system.

The remarkable rating comes two days after Mr. Sanwo-Olu told a group of Harvard students of the great potential of the State for investments.

The information on Fitch’s website reads, “We consider the Federal Government’s role predominant in intergovernmental relations, as it controls the equalisation mechanism enacted through a system of transfers to States. Therefore, the upgrade of sovereign IDRs is mirrored in the upgrade of those of Lagos, Kaduna, Kogi, and Oyo, as their Standalone Credit Profiles (SCPs) align with or are above the ratings of Nigeria,” Fitch noted.