Stakeholders have emphasised the crucial role of credit rating agencies in Nigeria’s financial markets by fostering transparency, reducing information asymmetry and promoting investor confidence through a robust and effective credit rating framework.

This is just as the Securities and Exchange Commission (SEC) has expressed commitment to work closely with stakeholders to ensure that the regulatory environment supports fair and accurate ratings while holding rating agencies accountable.

Director-General of SEC, Dr. Emomotimi Agama, said this, yesterday, at this year’s international rating webinar, organised by DataPro. He said their assessments help both domestic and international investors make informed decisions, which is particularly important in Nigeria, where there might be challenges in assessing reliable financial information.

Agama, who was represented by the Executive Commissioner, Operations, SEC, Bola Ajomale, said CRAs aid an entity’s ability to raise funds in both domestic and international markets.

He said CRAs provide risk benchmarking, which is essential in Nigeria’s growing economy, where various sectors might experience different risk levels due to economic volatility, policy changes or global factors.

The Chief Executive Officer and co-founder of Q-Lana, Christian Ruehmer, raised the importance of credit ratings in the financial sector, especially in banks, with their roles to support the real economy to grow.

For them to achieve this and rely on CRAs to accompany a long-term potential for market growth, he said they must be well equipped, have sector knowledge, and understand the business potential.

With technology transforming the industry, Ruehmer said it was essential that they complement the market and not replace transactional jobs, as well as ensuring the growth of the economy was ongoing.

Founder and Managing Director of DataPro, Abimbola Adeseyoju, believed that credit rating instruments should serve the common goal and be used to catalyse the economy.

According to him, it should promote Small and Medium Enterprises (SMEs), corporates, sub-nationals, and other entities to create wealth and build a sustainable society for the good of all.

He said the webinar, the fourth in the series, was to propagate the value propositions of credit rating instruments in Nigeria and Africa, adding that the theme was carefully selected considering what is happening in Nigeria and other African countries.