President Tinubu Calls for Fairer Financial System to Address Africa’s High Borrowing Costs
President Bola Tinubu has urged the creation of a fairer global financial framework, highlighting that African countries face disproportionately high borrowing costs due to what he called persistent misjudgements by major international credit rating agencies.
In an opinion piece, Tinubu argued that Africa is “paying too much to borrow,” pointing to the so-called “Africa premium” — the gap between how the continent is assessed and the actual strength of its economies. He criticised the outsized influence of Fitch, Moody’s, and S&P Global Ratings, saying their assessments shape investor behaviour yet often fail to reflect local realities.
“Conclusions drawn from afar fail to capture local realities,” Tinubu wrote, noting that these ratings amplify global market cycles and penalise commodity-dependent economies even when fiscal reserves remain strong. He said the misjudgements cost Africa an estimated $75 billion annually in excess interest payments and lost lending opportunities.
Only three African countries currently hold investment-grade ratings, despite the continent’s projected status as the fastest-growing region in 2026, according to the International Monetary Fund. Tinubu described establishing an African credit rating agency as a “necessary corrective” that would provide on-the-ground assessments and timely data to global investors.
Highlighting Nigeria as a case study, he cited credit upgrades that reflected improved economic data transparency, including the inclusion of previously off-balance-sheet central bank lending in official debt records, GDP rebasing, and policy reforms such as the removal of fuel subsidies and exchange-rate liberalisation. Despite these efforts, he noted that Nigeria’s ratings still lag behind reforms, with investor demand for its bonds significantly exceeding supply.
Tinubu stressed that a continental ratings agency could capture reform momentum in real time, reduce delays in market access, and help African countries compete on a level playing field.
“Africa’s success is not a regional concern but a global opportunity,” he wrote, noting that by mid-century, the continent will account for a quarter of the world’s working-age population. He added that while established global agencies will remain important for validation, an African agency could serve as an early signal of progress and ensure fairer access to international capital.
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