As Nigeria’s capital market continues to adjust to recent regulatory and macroeconomic reforms, the role of SEC-regulated Credit Rating Agencies is expected to become increasingly central in 2026. Rising domestic issuance activity, expanding product structures, and growing investor sophistication are reshaping expectations around credit analysis, transparency, and market confidence.

Why does this matter? Because in a market that is rapidly evolving, where more deals are happening, new products are emerging, and previously quiet corners like municipal finance are coming alive—having clear, trustworthy credit insights is not just helpful. It is essential.

Growing Demand for Credible Credit Assessment

With domestic issuance expected to ramp up significantly in 2026, investors will face a wider array of opportunities and tougher questions. How do you compare companies across different sectors? How do you price risk when policy shifts are still unfolding? What about newer, more complex instruments?

This is where independent credit ratings come in. They transform complicated financial and operational information into straightforward, reliable insights. As deal flow grows, investors and issuers alike expect rating agencies to deliver sharper analysis, deeper research, and explanations that cut through the noise.

Building these capabilities—especially through partnerships with data-driven firms—will be key to staying ahead and helping clients make sense of it all.

Municipal Finance: The Next Frontier

Perhaps one of the most intriguing stories for 2026 will be the rise of municipal and sub-national finance. For decades, Nigeria’s public borrowing story was largely dominated by the federal government. Now, states are stepping onto the capital markets stage with ambitions to issue municipal bonds and securitised assets.

Thanks to the new Investment and Securities Act (ISA) 2025, this shift is not just a hopeful idea; stronger rules and clearer standards back it. As states prepare to tap long-term capital directly, credit ratings become more than just a stamp of approval; they are the critical foundation for investor trust.

And here is the kicker: while challenges remain, states are improving their fiscal reporting, revenue collection and debt management. This means investors can start to tell the difference between stronger and weaker state credits, making municipal ratings truly meaningful. 

Why Ratings Matter More in This Phase

As both corporate and municipal issuance expand, credit ratings play a broader role in encouraging market discipline. The rating process itself promotes better financial reporting, clearer budgeting practices, and more deliberate debt management. These benefits extend beyond individual transactions and support overall market development.

For sub-national issuers, rated instruments also open access to long-term domestic capital, particularly from institutional investors seeking stable naira-denominated assets. This supports infrastructure financing and reduces dependence on short-term or less transparent funding sources.

At the same time, a more active rating environment fosters healthy competition. Issuers with stronger governance, revenue resilience and financial discipline are better positioned to differentiate themselves in the market.