President Bola Tinubu has called for the establishment of an Africa-owned credit rating agency, arguing that the continent is being systematically misjudged and over-penalised by the dominant global rating firms.
In an opinion article published in the Financial Times, Tinubu said Africa continues to pay an unjust “Africa premium” in global capital markets, a surcharge that raises borrowing costs and constrains development despite improving economic fundamentals in several countries.
According to Tinubu, the methodologies used by major international rating agencies often rely on outdated assumptions, incomplete data, and risk models that do not accurately reflect local realities.
Don’t Miss This: President Bola Tinubu Meets Business Leader Tony Elumelu in Abuja
He argued that these assessments exaggerate political and economic risks while failing to capture reform momentum, demographic advantages, and domestic demand strength across African economies.
The result, he said, is a cycle in which negative ratings drive up interest rates, discourage investment, and slow growth, even when countries are undertaking credible fiscal and structural reforms.
The Nigerian president noted that Africa is home to some of the world’s fastest-growing economies, yet only a handful of African countries are rated investment-grade.
He cited studies suggesting the continent loses tens of billions of dollars annually through higher debt servicing costs and missed financing opportunities caused by biased or inaccurate ratings.
Tinubu described this gap between perception and reality as a structural injustice that limits Africa’s ability to finance infrastructure, industrialisation, and social development.
Don’t Miss This: President Bola Tinubu Meets Business Leader Tony Elumelu in Abuja
As a response, Tinubu proposed an African credit rating agency built on robust local data, transparent methodologies, and professional independence.
He stressed that such an institution would not seek to replace existing global agencies but would act as a credible alternative reference point, capable of providing more balanced assessments and highlighting positive economic shifts earlier.
Over time, he argued, this could force quicker reassessments by global markets and reduce excessive risk pricing.
Tinubu used Nigeria as a case study, pointing to recent reforms such as the removal of fuel subsidies, foreign-exchange liberalisation, improved fiscal transparency, and efforts to diversify the economy beyond oil.
Despite these changes and strong investor demand for Nigerian debt instruments, he said credit ratings have been slow to reflect the country’s evolving fundamentals, reinforcing his argument that current models lag reality.
He framed the call as a strategic necessity rather than a political statement, insisting that Africa cannot fully realise its economic potential while its creditworthiness is defined almost exclusively by external institutions with limited on-ground context.
Tinubu concluded that fairer credit assessment is essential if African countries are to access affordable capital, acceleratece as major players in the global economy.
Source : Nairametrics
