S&P Eyes Acquisition Of Nigerian Firm Agusto & Co Amid Tinubu’s Criticism Of Africa’s Ratings

Global credit ratings giant, S&P Global, has moved to deepen its footprint in Africa’s domestic debt markets with an agreement to acquire a majority stake in Nigeria’s foremost credit rating agency, Agusto & Company Limited, in a deal expected to strengthen credit transparency and boost investor confidence in Nigeria and across the African continent.

The proposed acquisition, announced on Tuesday, will combine S&P Global Ratings’ international expertise with Agusto & Co.’s more than three decades of experience in Africa’s credit rating industry, positioning both institutions to support the continued development of local capital markets.

Agusto & Co., which originated in Nigeria and operates in Kenya, Rwanda and Ghana, is one of Africa’s leading credit rating agencies, providing ratings for financial institutions, corporates and other entities.

Under the arrangement, the company will continue to operate as an independent ratings agency, issuing its own credit ratings and methodologies in line with applicable regulatory requirements — a structure that aligns with calls for stronger Africa-based perspectives within the global ratings ecosystem, rather than a wholesale replacement of existing players.

The move comes amid growing criticism from African policymakers over how global agencies assess the continent’s economies.

President Tinubu has repeatedly criticised global credit rating agencies for mispricing African risk and making the continent “pay too much to borrow,” arguing that opaque methodologies and distant judgements often overstate Africa’s vulnerabilities while underplaying its reforms and economic fundamentals.

He described this distortion as an “Africa premium” that pushes up borrowing costs, constrains access to capital and slows development.

He has pushed for Africa-led rating frameworks that can provide more balanced, locally informed assessments of sovereigns and corporates, and help narrow the gap between perception and reality in the pricing of African debt.

Against that backdrop, some analysts see S&P Global’s decision to anchor itself more firmly within an established Nigerian ratings house as an attempt to respond to the demand for deeper local insight and fairer credit evaluation.

President of S&P Global Ratings, Yann Le Pallec, said the investment underscores the company’s long-term commitment to strengthening domestic credit markets across Africa.

“We are delighted to partner with Agusto & Co. to strengthen our domestic ratings presence across Africa. This transaction underscores our commitment to supporting growth and transparency in local credit markets throughout the continent. Africa’s opportunity is extraordinary, and by combining our global expertise with Agusto & Co.’s deep local insights, together we can foster informed analysis, constructive market dialogue, and greater investor confidence both regionally and internationally,” he said, echoing the broader push by African leaders for ratings that better reflect on-the-ground realities.

Also commenting on the development, Managing Director of Agusto & Co., Yinka Adelekan, described the transaction as a landmark moment for both the company and the African capital market ecosystem.

“This partnership is a transformational milestone for Agusto & Co. and African capital markets, fulfilling our late founder’s vision of affiliating with a leading global rating agency. For more than 30 years, we have built a trusted credit rating institution across Africa.

“By combining our deep Pan-African market knowledge and analytical independence with S&P Global Ratings’ global expertise, resources and affiliate network, we believe this partnership will create new opportunities, enhance value for market participants, and support the continued development of transparent and resilient credit markets across the continent,” Adelekan stated.

The partnership is also expected to support issuers and investors through expanded market insights and stronger analytical capabilities, at a time when African economies are seeking to attract more long-term domestic and international capital and leaders are pushing for more accurate, development-friendly ratings.

According to S&P Global, the transaction remains subject to customary closing conditions, including regulatory approvals.

Financial terms of the deal were not disclosed.

The company expects the acquisition to be completed in the second half of 2026, adding that the investment is not expected to have a material impact on the financial performance of either S&P Global or its ratings division, even though it could prove more significant in shaping how Africa’s credit story is told.