The Nigerian government has teamed up with the United Nations Development Programme (UNDP) to enhance the nation’s credit standing. This initiative aims to decrease borrowing expenses and entice foreign investment. During a high-level meeting in Abuja, Finance Minister Taiwo Oyedele highlighted that African nations lose approximately $74.5 billion each year to the “African Premium,” an extra cost driven by negative perceptions rather than actual fiscal performance.
Represented by Mohammed Sanusi, the Minister emphasized that the government is focused on improving institutional strength and engagement with international rating firms to ensure assessments better reflect Nigeria’s economic resilience. Recent reports from Fitch, Moody’s, and S&P Global, alongside positive IMF feedback, suggest that ongoing reforms are already fostering greater investor confidence.
UNDP Chief Economist for Africa, Raymond Gilpin, noted that as development aid shrinks, African nations must increasingly rely on capital markets. Since credit ratings dictate how global investors perceive risk, better ratings are vital for securing affordable financing. The Africa Credit Ratings Initiative, supported by various international partners, is working to improve data transparency and institutional capacity across the continent.
Highlighting international cooperation, Canadian High Commissioner Pasquale Salvaggio affirmed Canada’s support for the Nigerian economy. With non-oil trade between the two nations growing by 50 percent, Canada intends to further deepen these ties. The collaborative effort between Nigeria and the UNDP remains centered on data quality and policy credibility to shift the narrative surrounding the country’s investment potential.
