Tinubu calls for Africa-owned credit rating agency to counter 'Africa premium'

President Bola Tinubu has advocated for establishing an Africa-owned credit rating agency to address the continent's excessive borrowing costs caused by global markets' flawed risk assessments. In an Op-Ed for the Financial Times, Tinubu highlighted the 'Africa premium' gap between perceived and actual economic risk, which forces African nations to pay higher interest rates than warranted. He argued that the dominance of Fitch, Moody's, and S&P Global Ratings shapes investor behavior but often fails to reflect local realities. The proposed agency would provide more accurate risk assessments aligned with African economic contexts, potentially reducing borrowing costs and improving access to international capital. This initiative aims to counter systemic mispricing that has persisted despite Africa's economic growth and development progress.

SOURCE: https://nairametrics.com/2026/02/16/tinubu-calls-for-africas-own-credit-rating-agency-in-ft-op-ed/