Key points
- UNDP, Canada and the European Union have pledged support for Nigeria’s efforts to secure an investment-grade sovereign credit rating.
- Stakeholders say stronger credit ratings would lower borrowing costs and attract more investment.
- The Federal Government aims to achieve investment-grade status before 2030.
- Officials say recent economic reforms have improved investor confidence and Nigeria’s credit outlook.
Main story
The United Nations Development Programme (UNDP), the Government of Canada and the European Union (EU) have reaffirmed their support for Nigeria’s efforts to attain an investment-grade sovereign credit rating as part of a broader strategy to strengthen economic growth and attract long-term investment.
The commitment was made at a high-level debriefing on Nigeria’s Credit Ratings Needs Assessment Mission, organised by UNDP in Abuja.
The meeting brought together government officials, development partners and financial experts to examine measures needed to improve Nigeria’s sovereign credit profile and expand access to affordable development finance.
UNDP Chief Economist for Africa, Dr Raymond Gilpin, described investment-grade status as a critical milestone that would significantly reduce borrowing costs, expand fiscal space and attract greater private investment.
He urged Nigeria to treat sovereign credit ratings as a national development priority, noting that access to affordable capital has become increasingly important as traditional development assistance declines.
Gilpin also said Africa loses an estimated $74.5 billion annually because of perceived subjectivity in sovereign credit assessments, resulting in higher financing costs across the continent.
He said the UNDP-led Africa Credit Ratings Initiative was established to provide technical support, strengthen institutional capacity and improve engagement between African governments and international rating agencies.
Representing the Government of Canada, Arash Irantalab, Counsellor and Head of Development Cooperation at the High Commission of Canada to Nigeria, said stronger sovereign creditworthiness would improve investor confidence and unlock financing for infrastructure, healthcare, education, clean energy and job creation.
He added that improved ratings would strengthen public institutions, promote fiscal transparency and deepen trade and investment relations between Nigeria and Canada.
The Head of Cooperation at the European Union Delegation to Nigeria and ECOWAS, Massimo De Luca, said Nigeria deserved greater confidence from international investors through transparent economic management and stronger institutional coordination.
He noted that although European businesses remained optimistic about opportunities in Nigeria, concerns over access to finance, logistics, energy supply and dividend repatriation still required attention.
Special Adviser to the President on Economic Affairs, Dr Tope Fasua, said the Tinubu administration remained committed to securing investment-grade sovereign ratings before 2030.
According to him, recent reforms, including foreign exchange liberalisation and fuel subsidy removal, have strengthened macroeconomic fundamentals despite their short-term impact.
He also cited recent rating upgrades by Fitch Ratings and S&P Global Ratings as evidence of growing international confidence in Nigeria’s reform programme.
Fasua urged public institutions and private sector stakeholders to provide accurate and coordinated information about the economy, warning that negative narratives could influence international credit assessments.
Earlier, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, reaffirmed the Federal Government’s commitment to improving Nigeria’s sovereign credit profile through sustained economic reforms.
He said measures implemented over the past three years had improved macroeconomic stability, strengthened fiscal sustainability, enhanced the foreign exchange market and boosted investor confidence.
Edun added that the government would continue improving data quality, institutional coordination and engagement with global rating agencies to ensure Nigeria’s economic progress was accurately reflected.
The issues
Nigeria currently holds speculative-grade sovereign credit ratings, making it more expensive to borrow from international markets. Achieving investment-grade status would reduce financing costs, attract more foreign investment and improve access to long-term capital needed for infrastructure and economic development.
What’s being said
“Making progress with credit ratings should be a development priority and a development imperative.” — Dr Raymond Gilpin, UNDP Chief Economist for Africa
What’s next
The Federal Government plans to work with development partners and relevant institutions to implement recommendations from the UNDP assessment while sustaining reforms aimed at improving Nigeria’s sovereign credit profile ahead of its 2030 target.
Bottom line
Nigeria is stepping up efforts to secure an investment-grade credit rating, with backing from major development partners who believe stronger sovereign creditworthiness will unlock cheaper financing, boost investor confidence and support long-term economic growth.
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