AfDB Builds Facility to Challenge Ratings Driving Africa’s Borrowing Costs

The African Development Bank (AfDB) has said it is developing a facility to provide African governments with technical and analytical support to engage international credit rating agencies, as concerns mount over the high cost of borrowing faced by countries such as Nigeria.

AfDB President, Dr Sidi Ould Tah, disclosed this during a meeting with Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, on the sidelines of the 2026 International Monetary Fund (IMF) and World Bank Group Annual Meetings in Bangkok, Thailand.

The facility is expected to help African countries present credible economic data and challenge credit rating assessments where necessary.

At the meeting, Oyedele said international credit ratings do not always reflect improvements in countries’ economic fundamentals and reform performance, a situation he said raises financing costs for countries such as Nigeria.

The two sides also discussed measures to strengthen African financial integration, expand local currency transactions, improve trade insurance and deploy credit enhancement mechanisms to reduce investment risks and attract private capital.

They further emphasised the need to retain skilled professionals on the continent. Beyond financing issues, Nigeria and the AfDB agreed to conduct a joint technical review of the Bank’s portfolio in Nigeria to identify implementation bottlenecks and align ongoing operations with the Federal Government’s development priorities.

Oyedele said Nigeria intended to remain the AfDB’s largest shareholder and meet its capital subscription obligations, adding that the longstanding relationship between both parties should deliver more development financing and practical economic gains.

He also expressed Nigeria’s support for the four cardinal points of Ould Tah’s strategic agenda, which focuses on bridging Africa’s financing gap, securing the continent’s financial sovereignty, harnessing its demographic dividend and building resilient infrastructure through the local transformation of natural resources.

Oyedele said the agenda aligns closely with Nigeria’s development priorities.

The two sides also agreed to prepare for an official visit to Nigeria by the AfDB president. The proposed visit is expected to include engagements with President Bola Ahmed Tinubu, senior government officials and other stakeholders on Nigeria’s development priorities and strategic cooperation with the Bank.