The Central Bank of Nigeria (CBN) has called for a focus of ratings on infrastructure debt instruments which would facilitate more credit towards the sector just as it said it would be completing the rejuvenation of the National Arts Theatre by March next year.
Deputy governor, Financial System Stability, CBN, Aisha Ahmad, stated this at a Fitch In Nigeria event and at the inspection tour of the National Arts Theatre facility tour, both of which held in Lagos yesterday.
Ahmad, who spoke on the role of rating agencies at the Fitch Ratings event noted that increased coverage of infrastructure debt instruments by rating agencies will drive more credit to the sector where the country currently has substantial deficit.
She said, “on the infrastructure side, I think, there should be more focus on infrastructure project finance as the significant infrastructure deficit in Nigeria is being discussed. Focusing ratings in this area will provide price discovery on those instruments, which should help investors look in that direction.”
The CBN deputy governor furthered that ratings help keep market discipline as well as make operators honest, “just like regulation and supervision. tries to do from a risk perspective. I think it is safe to say that our proactive close supervision of the sector you know, has helped moderate and mitigate these risks, thus, enabling the Nigerian banking sector to continue to perform its role in supporting the real economy and economic growth, especially our policies to manage effects risk include, not just monitoring of foreign currency borrowing, and net open position limits.”