WorldStage– United Nations Development Programme (UNDP), the Government of Canada and the European Union (EU) have reaffirmed support for Nigeria’s drive to attain an investment-grade sovereign credit rating.
The development partners stated this at a High-Level Debriefing Meeting on the Credit Ratings Needs Assessment Mission for Nigeria, organised by UNDP in Abuja on Thursday.
The meeting, themed: “Shaping the Future of Development Finance: Nigeria’s Sovereign Credit Ratings,” brought together government officials, development partners and financial experts to strengthen Nigeria’s sovereign credit profile.
The stakeholders described stronger sovereign creditworthiness as critical to attracting investments, reducing borrowing costs, expanding fiscal space and accelerating sustainable economic growth through improved access to affordable development financing.
The UNDP Chief Economist for Africa, Dr Raymond Gilpin, described investment-grade sovereign credit ratings as critical to attracting investment, reducing borrowing costs and accelerating sustainable economic growth.
Gilpin urged Nigeria to make attaining investment-grade sovereign credit ratings a national development priority, saying it was key to unlocking cheaper financing and driving inclusive economic development.
According to him, the transition from non-investment grade to investment grade would significantly reduce Nigeria’s borrowing costs, expand fiscal space and boost investments required for sustainable national development.
“The difference between investment grade and non-investment grade for Nigeria is huge. Making progress with credit ratings should be a development priority and a development imperative.
“Traditional development assistance is declining while development financing needs continue to rise as credit ratings now determine how affordable capital flows into many African economies.
“Improving Nigeria’s sovereign credit profile requires a whole-of-government approach, supported by credible data, institutional coordination and sustained engagement with international rating agencies,” he said.
According to him, Africa is losing an estimated 74.5 billion dollars annually because of perceived subjectivity in sovereign credit ratings, resulting in higher borrowing costs across the continent.
Gilpin stated that UNDP established the Africa Credit Ratings Initiative, in partnership with African Development Bank, African Union, United Nations Economic Commission for Africa and Africa Centre for Economic Transformation.
The initiative, he said, provided technical advisory services, strengthened institutional capacity and promoted peer learning through a network of more than 1,000 government officials across African countries.
The UNDP chief added that Nigeria’s recent improvements in sovereign credit ratings had placed the country on a clear pathway toward achieving investment-grade status, urging institutions to sustain the ongoing reforms.
Arash Irantalab, Counsellor and Head of Development Cooperation, High Commission of Canada to Nigeria, said improved sovereign credit ratings would enhance Nigeria’s access to affordable financing and strengthen investor confidence.
“Improving Nigeria’s sovereign credit ratings will unlock affordable capital for infrastructure, healthcare, education, clean energy and job creation, while reducing the cost of development finance.
“Stronger sovereign creditworthiness creates confidence for investors and financial institutions, making Nigeria more attractive for public and private investments.
“Canada considers this initiative an important contributor to Nigeria’s economic transformation and achieving the Federal Government’s one-trillion-dollar economy target,” he said.
Irantalab said that sovereign credit ratings influenced borrowing conditions for governments, financial institutions, utilities and private companies, making them central to national economic development.
He said that improved ratings would strengthen public institutions, enhance fiscal transparency, mobilise private investments and deepen trade relations between Nigeria and Canada.
Irantalab noted that Canada’s non-oil trade with Nigeria increased by about 50 per cent within one year, underscoring growing economic cooperation between both countries.
In his remarks, the Head of Cooperation, European Union Delegation to Nigeria and ECOWAS, Massimo De Luca, said Nigeria deserved stronger international investor confidence through credible and transparent economic management.
De Luca described the UNDP initiative as a neutral and professional platform that would help government institutions improve coordination and strengthen engagement with international credit rating agencies.
He said that European Union remained committed to supporting investments in renewable energy, healthcare, digital infrastructure and transportation, adding that improved sovereign ratings would attract more investments.
De Luca noted that European businesses remained optimistic about Nigeria’s market opportunities despite concerns over access to finance, logistics, energy reliability and dividend repatriation.
He called for transparency, accountability and secured investments for citizens and enabling investments environments for investors.
Special Adviser to the President on Economic Affairs, Dr Tope Fasua, said President Bola Tinubu remained committed to Nigeria attaining investment-grade sovereign credit ratings before 2030.
Fasua said that the presidency and the Federal Ministry of Finance would collaborate with relevant ministries, departments and agencies to accelerate implementation of recommendations from the UNDP initiative.
He said that recent macroeconomic reforms, including foreign exchange liberalisation and fuel subsidy removal, had laid a solid foundation for sustainable economic growth despite initial challenges.
According to him, Nigeria’s improved ratings by Fitch Ratings and S&P Global Ratings have demonstrated growing international confidence in the country’s ongoing economic reform agenda.
Fasua urged public institutions and private sector stakeholders to present accurate and coordinated information about Nigeria’s economy, noting that negative narratives could adversely influence international credit assessments.
He said that attaining investment-grade status would lower borrowing costs, strengthen Nigeria’s global economic reputation, attract investments and support the country’s aspiration of building a one-trillion-dollar economy.
Earlier, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, expressed government’s commitment to strengthening Nigeria’s sovereign credit profile through sustained reforms.
Oyedele said that the reforms implemented over the past three years had improved macroeconomic stability, enhanced fiscal sustainability, strengthened the foreign exchange market and boosted investor confidence.
He said recent rating actions by Moody’s, Fitch Ratings and S&P Global Ratings, alongside the International Monetary Fund’s assessment of Nigeria’s reform programme, reflected growing confidence in the economy.
According to him, government will continue to improve data quality, institutional coordination and engagement with international rating agencies to ensure Nigeria’s economic fundamentals are accurately reflected.He expressed appreciation to UNDP, European Union, Canada and other development partners for supporting Nigeria’s efforts to strengthen its sovereign credit profile and attract greater investment.
