Business
Tinubu speaks on Africa’s new credit rating agency
President Bola Tinubu has welcomed the planned launch of the African Credit Rating Agency (AfCRA), saying Africa needs financial institutions that better understand the continent’s economies and risks.
The African Union has announced that the agency will officially launch on 7 October in Port Louis, Mauritius.
President Tinubu said the development was another step towards building African financial institutions capable of providing more accurate assessments of the continent’s economies.
The president disclosed this in a post on his official X account on Thursday, recalling that he had advocated for an African credit rating agency in a February 2026 Financial Times article.
He said he also raised the issue at the Africa CEO Forum in Kigali, Rwanda, in May, where he called for Africa to develop financial institutions that understand its economic realities.
“Africa is not asking for favourable ratings. We are asking for fair ratings, grounded in our fundamentals and in the reforms our economies are actually carrying out,” he said.
Why the agency matters
Credit ratings influence how investors assess the risk of lending to countries and companies. They can also affect borrowing costs and the amount of capital available to governments and businesses.
African governments have repeatedly raised concerns about what they describe as an “Africa premium”, under which African countries may face higher borrowing costs because of how investors perceive the continent’s risks.
The three major global rating agencies, including Fitch, Moody’s and S&P Global Ratings, currently play a major role in assessing African sovereign and corporate borrowers.
President Tinubu, in an article published by Financial Times, argued that African economies were paying too much to borrow because international assessments did not always adequately capture their economic realities.
He cited a 2023 United Nations Development Programme estimate that shortcomings in credit ratings cost African countries about $75 billion annually through higher interest payments and foregone lending.
He also argued that commodity-dependent African economies could be particularly exposed to downgrades during global market downturns, even when their reserves, fiscal positions, and debt profiles remained manageable.
The proposed agency is therefore expected to provide an Africa-focused alternative by taking greater account of local economic conditions and reforms.
The African Union has said that AfCRA will operate alongside existing global rating agencies rather than replace them.
Tinubu seeks investor confidence
In his statement Thursday, the president said the establishment of an African rating agency should not be interpreted as a demand for preferential treatment.
READ ALOS: US court case on Tinubu’s past forfeiture is civil, not criminal matter – Presidency
Rather, he said, the agency must provide assessments based on economic fundamentals and the reforms being implemented by African countries.
He pointed to Nigeria’s experience, arguing that improvements in economic data, fiscal transparency and reforms had contributed to recent upgrades by international rating agencies.
However, he acknowledged that the credibility of AfCRA would ultimately depend on the quality and independence of its assessments.
“AfCRA must now earn the confidence of global capital. That confidence will rest on its independence and the rigour of its work,” he noted.
The launch is scheduled for 7 October in Mauritius, with President Tinubu saying he looks forward to the development.
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The latest operational performance report by the Nigerian Electricity Regulatory Commission (NERC) has shown that Nigeria’s grid-connected power plants operated at an average of 86 per cent of their available capacity in August 2026.
This was one of the major highlights of the NERC’s August 2026 factsheet report published on Thursday. The report showed that Nigeria’s power plants had an average available capacity of 4,758 megawatts (MW) during the month under review, while average hourly generation was pegged at 4,102MW.
According to the report, about 656MW of the available generation capacity was not utilised on average during the period.
Among the major energy producers, Kainji_1 recorded a 98 per cent load factor, generating 345MW out of 352MW available capacity, while Afam_2 recorded 99 per cent, with 262MW generated against 265MW available.
It said Egbin_1 operated at 96 per cent, generating 333MW from 347MW of available capacity, while Ihovbor_2 recorded 92 per cent, generating 418MW from 454MW of available capacity.
Other major plants listed included Delta_1 at 80 per cent load factor, Zungeru_1 at 72 per cent, Odukpani_1 at 74 per cent, Shiroro_1 at 87 per cent, Jebba_1 at 83 per cent, and Okpai_1 at 87 per cent.
Frequency, voltage stability breached limits
Despite the relatively high utilisation rate, NERC reported breaches of prescribed grid frequency and voltage limits during the month.
The commission said the average lower grid frequency was 49.34Hz, while the average upper grid frequency was 50.67Hz, exceeding the prescribed operating range of 49.75Hz to 50.25Hz.
Similarly, it noted that the monthly average lower grid voltage was recorded at 302.29 kilovolts (kV), while the average upper grid voltage stood at 349.68kV.
NERC said both figures exceeded the prescribed voltage range of 313.50kV to 346.50kV.
The data showed significant differences in plant utilisation.
Olorunsogo_1 recorded a 100 per cent load factor, generating 115MW from 115MW of available capacity. Omoku_1 and Igbafо_1 also recorded 100 per cent utilisation.
Omotosho_1 generated 148MW from 149MW available, representing a 99 per cent load factor, while Dadin-Kowa_1 recorded 98 per cent after generating 35MW from 36MW available.
READ ALSO: DisCos bill N250.79bn, collect N205.53bn in July — NERC
However, some plants recorded substantially lower utilisation. Afam_1 operated at 67 per cent, while Ikeja_1 recorded 76 per cent and Ihovbor_1 79 per cent.
Several listed plants recorded zero generation during the month, including Sapele_2, Alaoji_1, Geregu_2 and Ibom Power_1.
The commission’s data also showed that Olorunsogo_2 generated 87MW from 109MW available, while Sapele_1 generated 25MW from 27MW available.
Overall, the August figures indicate a grid operating at relatively high utilisation of available generating capacity, while frequency and voltage excursions remained notable operational issues.
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