Nigeria’s president calls for an African rating agency to reduce borrowing costs and correct structural bias.
In an op-ed adapted from the Financial Times, President Bola Ahmed Tinubu argued that Africa pays too much to borrow due to persistent rating gaps known as the “Africa premium.”
The continent’s borrowing costs are heavily influenced by the “Big Three” agencies: Fitch Ratings, Moody’s Investors Service, and S&P Global Ratings. Tinubu says their limited on-the-ground presence can misread local realities, leading to swift downgrades that raise financing costs.
A 2023 United Nations Development Programme report estimated rating inconsistencies cost Africa $75 billion annually in excess interest and lost lending.
Tinubu supports creating a continent-wide credit rating agency—not to replace global firms, but to complement them. The goal is to provide earlier recognition of reform progress and fairer risk assessments. He argues that affordable credit is critical as Africa’s working-age population expands and the region positions itself as a major global growth engine.
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