President Bola Tinubu has called for the creation of a continent-owned credit rating agency, arguing that current global rating frameworks often misrepresent African economies and inflate borrowing costs for countries across the region.
In his view, international agencies frequently rely on models that fail to fully reflect local realities, resulting in assessments that exaggerate risk and limit access to affordable financing. He contended that this gap between perceived and actual economic strength contributes to what he described as an “Africa premium” in global capital markets.
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The president noted that despite projections positioning Africa among the fastest-growing regions globally, only a handful of countries on the continent currently enjoy investment-grade ratings. He said this mismatch highlights structural weaknesses in the existing rating system.
According to him, a credible African rating institution would complement rather than replace global agencies by providing on-the-ground insights and recognising improvements in economic fundamentals more quickly.
Tinubu also pointed to recent economic reforms in Nigeria — including policy adjustments aimed at improving fiscal transparency and market confidence — as evidence that African economies can strengthen investor perceptions when reforms are sustained.
He argued that faster recognition of such improvements would help countries access capital markets at lower cost, while delays in rating upgrades impose real financial burdens on governments pursuing reform agendas.
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