By Onu Okorie

Nigeria and the African Development Bank AfDB are stepping up efforts to tackle the high cost of financing facing Nigeria and other African economies, with a new initiative expected to strengthen governments’ engagement with international credit rating agencies.
The move emerged from talks between the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, and AfDB President, Dr Sidi Ould Tah, on the sidelines of the 2026 IMF and World Bank Group Annual Meetings in Bangkok, Thailand.
Beyond Nigeria’s traditional relationship with the continental development institution, the discussions signal a shift towards using the partnership to address one of the biggest constraints on development spending across Africa — expensive borrowing and the risk premium attached to African sovereign debt.
Oyedele argued that international credit ratings do not always sufficiently reflect improvements in countries’ economic fundamentals and reform performance, a situation that could translate into higher interest costs when governments approach international capital markets.
For Nigeria, where the cost of servicing public debt continues to compete with infrastructure and social spending for scarce government revenues, lowering the risk premium on borrowing could have significant fiscal implications.
Responding to the concern, Ould Tah disclosed that the AfDB is developing a facility that would provide African governments with technical and analytical support in their engagements with international credit rating agencies.
The initiative is expected to help governments strengthen the quality and presentation of their economic data and provide evidence to challenge assessments they consider inconsistent with underlying economic conditions.
The two officials also agreed to undertake a joint technical review of the AfDB’s portfolio in Nigeria, in an attempt to identify implementation bottlenecks and accelerate the delivery of projects already backed by the Bank.
The review is expected to examine portfolio performance, address obstacles delaying implementation and bring ongoing AfDB operations into closer alignment with the Federal Government’s development priorities.
Oyedele said Nigeria intends to remain the Bank’s largest shareholder and meet its capital subscription obligations, but stressed that the longstanding relationship should increasingly translate into greater development financing and tangible economic benefits.
The minister also expressed Nigeria’s support for the AfDB’s “Four Cardinal Points” under Ould Tah’s leadership, saying the strategic priorities closely align with Nigeria’s development objectives.
The agenda seeks to bridge Africa’s financing gap, strengthen the continent’s financial sovereignty, harness its demographic dividend and build resilient infrastructure through greater local transformation of Africa’s natural resources.
Discussions also covered African financial integration, increased use of local currencies in transactions, trade insurance and credit-enhancement mechanisms capable of reducing investment risks and mobilising more private capital.
Greater use of local-currency financing could become particularly important for Nigeria and other African countries because foreign-currency borrowing exposes governments and businesses to exchange-rate risks that can sharply increase repayment costs when domestic currencies depreciate.
Both sides also identified the retention of skilled African professionals as important to the continent’s long-term economic transformation.
Meanwhile, preparations are underway for an official visit to Nigeria by the AfDB President.
Ould Tah’s proposed visit is expected to include meetings with President Bola Ahmed Tinubu, senior government officials and other stakeholders, with discussions focusing on Nigeria’s development priorities and the future direction of its strategic partnership with the Bank.
Technical engagements on financing and the performance of the AfDB’s Nigerian portfolio will continue alongside preparations for the visit.
The outcome of the portfolio review could prove significant for Nigeria, as the government seeks not merely to secure additional multilateral financing but to ensure that already committed development funds translate more quickly into infrastructure, investment and measurable economic outcomes.