Nigeria is pushing hard for the establishment of an African Credit Rating Agency at the ongoing 38th Ordinary Session of the Assembly of the African Union (AU) Heads of State and Government.
The planned agency is part of the strategy to strengthen the continent’s economic stability and financial independence.
The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, who is on the entourage of President Bola Tinubu to the summit is championing the initiative.
The Federal Ministry of Finance in a statement last night highlighted Nigeria’s strategic role in advancing key economic discussions at the summit.
The discussions include economic stability, health financing, and the establishment of an African Credit Rating Agency, aligning with Nigeria’s broader economic priorities.
The ministry described Nigeria’s active participation at the AU Summit as a reflection of its strong commitment to driving economic growth and development across Africa.
The push for an African Credit Rating Agency stems from longstanding concerns over bias in credit ratings assigned by global agencies such as Moody’s, Fitch, and Standard & Poor’s. These international firms have often been criticized for their overly conservative assessments of African economies, which, in turn, increase borrowing costs for governments and businesses across the continent.
For years, African leaders have debated the need for a homegrown rating agency that would provide a fairer assessment of sovereign and corporate creditworthiness, considering local economic conditions and growth potential.
Nigeria’s leadership in this campaign signals a renewed effort to reduce Africa’s dependency on external rating agencies, which often influence investor perceptions and the cost of capital for African nations.
Nigeria’s stance at the AU Summit aligns with President Tinubu’s broader economic agenda, which prioritizes fiscal sustainability, investment-friendly policies, and regional economic cooperation. The country’s leadership in advocating for an African Credit Rating Agency is seen as a strategic move to boost investor confidence in the continent’s financial markets and enhance African economies’ ability to access international capital on favorable terms.
If successfully established, the African Credit Rating Agency could transform how African economies are evaluated, ensuring that sovereign and corporate ratings reflect the continent’s true economic realities rather than external biases.
This would likely result in lower borrowing costs, improved access to capital, and greater economic stability across Africa.
With Nigeria at the forefront, discussions at the AU Summit are expected to focus on the operational framework, governance structure, and funding model for the proposed agency.
The initiative could also pave the way for stronger regional financial cooperation, positioning Africa as a more competitive player in the global financial system.
