FG faults international credit ratings over borrowing costs

The Federal Government has criticized international credit rating agencies for not accurately reflecting Nigeria's economic progress and reform efforts. This criticism has led to higher borrowing costs for Nigeria and other African nations. During a meeting in Bangkok, the Minister of Finance, Taiwo Oyedele, expressed concern during a bilateral discussion with African Development Bank President Sidi Ould Tah at the IMF and World Bank annual meetings.

Oyedele argued that credit ratings often fail to capture economic improvements, leading to increased financing costs. The African Development Bank is now developing a mechanism to assist African governments in their dealings with these rating agencies, aiming to present credible economic data and challenge assessments where necessary.

Beyond this, Nigeria and the AfDB will conduct a joint review of the AfDB's portfolio in Nigeria to enhance project implementation and align operations with the country's development priorities. Oyedele reiterated Nigeria's commitment to maintaining its significant stake in the AfDB and meeting its capital subscription responsibilities.

They also discussed expanding African financial integration, local currency transactions, and strengthening trade insurance and credit enhancement mechanisms to reduce investment risks and encourage private capital participation.