FG Finance Minister Slams Global Credit Agencies Over High Loan Costs

Nigeria's Federal Government has strongly criticized international credit rating organizations, asserting that their evaluations do not adequately reflect the progress in the nation's economic fundamentals and the positive impact of ongoing reforms. This alleged oversight, according to the government, contributes significantly to the elevated costs of borrowing experienced by Nigeria and other African nations.

The concern was articulated by Mr. Taiwo Oyedele, the Minister of Finance and Coordinating Minister of the Economy, during a bilateral discussion with Mr. Sidi Ould Tah, President of the African Development Bank (AfDB). This meeting took place on the sidelines of the 2026 International Monetary Fund (IMF) and World Bank Group Annual Meetings held in Bangkok, Thailand.

In a statement released on Tuesday by Mr. Efe Ovuakporie, Head of Media at the Federal Ministry of Finance, Minister Oyedele reiterated that global credit assessments sometimes fail to capture the improvements made by countries implementing economic reforms, which subsequently leads to increased financing expenses. The statement quoted him saying, “Oyedele said international credit ratings do not always reflect improvements in economic fundamentals and reform performance, which raises financing costs for countries such as Nigeria.”

The minister's stance emerges amidst growing worries regarding the borrowing expenses that African governments face in international capital markets. In these markets, sovereign credit ratings play a crucial role in shaping investors' perceptions of default risks and the interest rates demanded for government debt.

In response to these apprehensions, AfDB President Ould Tah revealed that the bank is in the process of developing a new mechanism designed to assist African governments in their interactions with international credit rating agencies. The official statement added, “The facility will help countries present credible economic data and challenge assessments where necessary.” This proposed initiative aims to offer technical and analytical support to African countries, enabling them to enhance the quality of information provided to rating agencies and contest evaluations they deem inconsistent with their actual economic performance.

Beyond the discussion on credit ratings, Nigeria and the AfDB also reached an agreement to conduct a joint technical review of the bank's current project portfolio within Nigeria. The objective is to enhance project implementation and bolster development financing. The ministry further stated, “The portfolio review will identify implementation bottlenecks, speed up project delivery and align ongoing operations with the Federal Government’s development priorities.”

Mr. Oyedele also reaffirmed Nigeria's commitment to maintaining its status as the largest shareholder in the AfDB and fulfilling its capital subscription obligations. He emphasized that the long-standing relationship between Nigeria and the continental development finance institution should translate into more substantial financing and tangible economic benefits. According to the statement, “He said the long relationship between Nigeria and the Bank should now deliver more development finance and practical economic gains.”

Furthermore, the minister expressed Nigeria's full support for the AfDB’s Four Cardinal Points agenda, being spearheaded by President Ould Tah, noting that its priorities align well with the Federal Government’s development objectives. This agenda is focused on closing Africa’s financing gap, strengthening the continent’s financial sovereignty, capitalizing on its demographic dividend, and fostering resilient infrastructure through the local processing of natural resources.

Both officials also explored avenues to deepen African financial integration, expand transactions conducted in local currencies, and bolster trade insurance and credit enhancement mechanisms. These strategic measures are intended to mitigate investment risks, improve access to financing, and encourage greater private capital involvement in African economies. The discussions also underscored the critical importance of retaining skilled professionals within Africa to support economic transformation and institutional growth.

In a related development, both parties consented to commence preparations for an official visit by the AfDB President to Nigeria. This forthcoming visit is expected to include meetings with President Bola Tinubu, other senior government officials, and various stakeholders to deliberate on Nigeria’s development priorities and reinforce cooperation with the bank. The ministry confirmed that technical engagements concerning financing arrangements and portfolio performance would continue in parallel with the preparations for the visit.