With proper governance and reform, Nigeria has the chance not only to benefit from stronger ratings but also to lead in shaping Africa’s financial future.
Economists and financial experts, who gathered at this year’s International Rating Webinar, organised by DataPro Limited, argued that credit ratings, if leveraged wisely, could also help transform the growth trajectories of developing countries, including Nigeria.
Speaking on ‘Leveraging a Credit Rating for Economic Growth in Developing Countries’, President of American-based Structured Credit International (SCIC), Mahesh Kotecha, said ratings are not just scorecards, but bridges to resilience, transparency, and sustainable growth.
Noting that credit ratings are not perfect, he said they are indispensable as they could open doors to capital, discipline governments and companies, and also reinforce sound policy choices. He highlighted challenges of volatile capital flows, shallow domestic markets, and dependence on commodities facing developing countries, thus exposing them to external shocks.
For local credit rating agencies, he said, they also face challenges on credibility, resources, and investor recognition. However, he said they could succeed if they were independent, professional, and well-supported by regulators.
Delivering a goodwill message, Director-General, Securities and Exchange Commission (SEC), Dr Emomotimi Agama, said the theme of the webinar, ‘The Role of Credit Rating Agency in a Dynamic Global Economy’, underscored the need for trust, transparency, and sound governance as the bedrock of resilient financial systems.
In emerging markets such as Nigeria, he said, credible and independent credit ratings are vital, as they bridge information gaps, boost investor confidence and guide capital toward productive sectors, thereby supporting national development and strengthening market participation.
Agama said as economies across the world contend with shifting global trends, geopolitical tensions and technological transformation, the need for credible mechanisms that assess and manage risk has never been more pressing.
Credit rating agencies, according to him, play a critical role in filling the gap by providing investors and institutions with objective, data-driven insights that inform sound financial decisions.
The SEC boss said the path forward required greater collaboration among all stakeholders, stating that regulators, rating agencies, investors, and market operators must continue to work hand in hand to foster credibility, consistency, and confidence within the financial ecosystem.
