Tinubu Advocates for African Credit Rating Agency

In an op-ed published in Financial Times, President Bola Tinubu has advocated for the creation of an African credit rating agency to address the persistent mispricing of risks in the global financial market. He highlighted that African countries are facing excessively high borrowing costs due to flaws in external assessments.

Tinubu argued that the so-called "Africa premium" gap, which reflects perceived economic risks, is no longer sustainable and that continued access to international capital is heavily influenced by three dominant rating agencies: Fitch Ratings, Moody's, and S&P Global Ratings. He warned that the decisions made by these agencies often fail to reflect local realities, which adversely affects investor behavior and the economic landscape of African nations.