Tinubu urges fairer global financial system for Africa

President Bola Tinubu has called for reforms to the global financial architecture, arguing that African countries face excessive borrowing costs due to persistent misjudgements by international credit rating agencies.

In an opinion piece, the president said Africa continues to pay a premium to access capital, noting that the influence of major agencies such as Fitch Ratings, Moody’s and S&P Global Ratings shapes investor decisions but often fails to reflect the continent’s economic realities.

Tinubu cited findings by the United Nations Development Programme indicating that rating-related distortions cost Africa tens of billions of dollars annually in excess borrowing costs and lost investment opportunities.

He argued that the creation of an African credit rating agency would provide a corrective mechanism by incorporating deeper local insight into risk assessments and capturing reform progress more accurately.

The president also pointed to Nigeria’s recent policy reforms, including subsidy removal, exchange-rate adjustments and improved fiscal transparency, which he said have strengthened economic fundamentals and boosted investor interest.

Despite these measures, he noted that credit upgrades tend to lag reforms, making it harder for African countries to benefit quickly from improved policies. A continental ratings agency, he said, could help provide earlier signals of progress and create a more balanced evaluation framework for African economies.