The United Nations Development Programme (UNDP) has tasked Nigeria and other African countries to strengthen their credit rating processes through improved data systems and better coordination among government agencies.
UNDP Chief Economist, Head, Strategy, Analysis and Research Regional for Africa, Dr. Raymond Gilpin, disclosed this on Tuesday in Abuja at a dialogue with key institutions to discuss economic narratives and how to attract affordable capital for development.
He decried that most African countries do not fully understand the process and the sort of data to present to improve their credit ratings which was due to lack of synergy among government agencies.
Dr. Gilpin explained that credit rating agencies assess countries in three main phases -- starting with economic and governance data analysis, followed by a qualitative review by experts, and concluding with the government's feedback before final publication.
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"Many African countries are used to working with institutions like the IMF and World Bank. But credit rating missions are different, they require more specific data, including institutional, regulatory, and governance indicators," he said.
"Governments must understand the process, prepare the right data, and ensure that all ministries, departments, and agencies speak with one voice when telling the country's economic story."
Gilpin said the UNDP and its partners are providing technical and financial assistance to help countries, including Nigeria, prepare adequately for credit rating evaluations.
The dialogue was part of Dr. Gilpin's high-level mission to Nigeria aimed at identifying practical strategies to mobilize domestic and international capital, especially from pension and venture sectors, to finance the country's development and infrastructure needs.
