| Sanwo-Olu thanks Lagosians, pledges renewed drive for growth
Lagos State’s economy has received a significant endorsement, with global rating agency Fitch Ratings upgrading its Long-Term Foreign and Local-Currency Issuer Default Ratings (IDRs) from ‘B-’ to ‘B’. The upgrade also applies to Kaduna, Kogi, and Oyo states, with all four maintaining a stable outlook.
This rating boost is seen as a major confidence builder for investors and a validation of Governor Babajide Sanwo-Olu’s T.H.E.M.E.S Plus Agenda—his administration’s six-pillar strategy for sustainable economic development.
According to information posted on Fitch’s official website, the upgrade aligns with Nigeria’s recent sovereign rating improvement—from ‘B-’ to ‘B’ on April 11, 2025—attributed to enhanced macroeconomic stability and ongoing policy reforms. Fitch noted that in Nigeria’s highly centralized fiscal system, where the Federal Government plays a dominant role in state funding through transfers and equalisation mechanisms, state ratings typically mirror sovereign ratings.
This latest endorsement comes just two days after Governor Sanwo-Olu addressed a group of Harvard University students, showcasing Lagos’s vast investment potential.
Fitch’s report highlighted several key strengths for Lagos:
By the end of 2023, 50% of Lagos State’s direct debt was denominated in foreign currencies, posing some exposure to currency risks. However, the agency projects Lagos’s debt payback ratio to remain robust—around five times—by 2028.
Lagos’s exceptional Internally Generated Revenue (IGR) performance, which accounts for an impressive 75% of its operating revenue (compared to the national average of 25%), underpins its fiscal resilience.
The state is expected to record a budget surplus in 2024, further strengthening its financial profile.
Fitch emphasized that Lagos’s strong IGR base positions it as a standout performer within Nigeria, reinforcing its capacity to meet financial obligations independently.
Responding to the upgrade, Governor Sanwo-Olu expressed gratitude to Lagosians for their unwavering support:
“This is a positive verdict on our governance—both in policy formulation and project execution. However, it is also a reminder for us to do even more. We will continue to deliver results across every sector. I sincerely thank the people of Lagos for their trust and partnership.”
The Governor reaffirmed his administration’s commitment to intensify efforts toward economic growth, infrastructure development, and improved public services.