Tinubu Calls for Fairer African Financial System, Cites Cost of Biased Credit Ratings

President Bola Tinubu has urged global financial institutions and investors to support the creation of a more equitable financial system for Africa, warning that persistent biases in international credit ratings are costing the continent billions of dollars.

Speaking at a high-level forum on African economic development, Tinubu argued that many African economies are unfairly assessed by major rating agencies, resulting in higher borrowing costs and reduced investor confidence. He said the situation has constrained growth, limited access to capital, and undermined development efforts across the region.

According to the president, distorted risk perceptions have made it more expensive for African countries to finance infrastructure, healthcare, and industrialisation projects. He stressed that the issue is not merely technical but has real economic consequences for governments and citizens.

Tinubu expressed support for the establishment of a new Africa-led credit rating institution, describing it as a necessary step toward correcting structural imbalances in the global financial architecture. Such an agency, he noted, would provide assessments grounded in regional realities, data, and economic contexts often overlooked by external evaluators.

He emphasised that the proposed initiative is not intended to replace global agencies but to complement them by offering alternative perspectives and improving transparency. A more balanced evaluation framework, he said, would help unlock investment, improve capital flows, and strengthen economic resilience.

The president also called on international partners to recognise Africa’s growth potential, highlighting the continent’s expanding markets, youthful population, and increasing economic integration. He maintained that fairer financial treatment would accelerate development and contribute positively to the global economy.

Economic analysts have long debated the impact of sovereign credit ratings on developing economies, with several African policymakers arguing that rating methodologies sometimes exaggerate risks. Tinubu’s remarks add to a growing chorus of voices advocating reforms aimed at reducing financing barriers for African nations.