E-Financial

Forex Scam: CBN Fines 4 Banks N5.87Bn, Orders MTN to Refund $8Bn

Published

8 years ago

August 30, 2018

Comms Week

Godwin Emefiele, Governor of the Central Bank of Nigeria

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Central Bank of Nigeria (CBN) has imposed heavy sanctions totalling N5.87 billion on four banks under its regulatory purview and asked same to refund $8,134,312,397.63 for what it described as ‘flagrant violation of extant laws and regulations of the Federal Republic of Nigeria, including the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act, 1995 of the Federal Republic of Nigeria and the Foreign Exchange Manual, 2006’.

The four banks that have come under the sledge hammer of the CBN for the violations are Standard Chartered Bank, Stanbic-IBTC, Citibank and Diamond Bank.

Announcing the decision in Abuja, Isaac Okorafor, CBN’s Director, Corporate Communications, said that the actions of the Bank became necessary following allegations of remittance of foreign exchange with irregular Certificates of Capital Importation (CCIs) issued on behalf of some offshore investors of MTN Nigeria Communications Limited and subsequent investigations carried out by the apex bank in March 2018.

The CBN has, therefore, asked the Managements of the banks and MTN Nigeria Communications Limited to immediately refund the sum of $8,134,312,397.63, illegally repatriated by the company to the coffers of the Central Bank of Nigeria.

Figures obtained from the CBN on Wednesday, August 29, 2018, indicate that the highest fine of N2,470,604,767.13 was slammed on Standard Chartered Bank, while Stanbic IBTC Nigeria was fined the sum of N1,885,852,847.45. For its punishment, Citibank Nigeria was penalized in the sum of N1,265,541,562.31, just as Diamond Bank was directed to pay the sum of N250 million for violating extant rules.

The CBN Spokesman further disclosed that the decision of the Bank followed thorough investigations by it into the allegations of remittances by the four banks of forex with irregular certificates of Capital Importation (CCIs) issued on behalf of some offshore investors of MTN Nigeria Communications Limited.

He said the investigations revealed that the sum of $3,448,119,321.72 was repatriated by Standard Chartered Bank on the basis of the illegally issued CCIs. Similarly, he said the sums of $2,632,005,623.78, $1,766,263,212.75 and $348,914,501.30 were repatriated by Stanbic IBTC Nigeria, Citibank Nigeria and Diamond Bank Plc, respectively during the period 2007 and 2015.

Accordingly, he said the CBN had directed the affected banks to immediately refund the respective sums to the CBN.

The CBN investigation further revealed that on account of illegal conversion of MTN shareholders’ loan to preference shares (interest free loan) of $399,594,146.00, the sum of $8,134,312,397.63 was illegally repatriated by the company.

While disclosing that the investigations by the CBN took a while in order to carry out thorough inquiry and give fair hearing to all parties involved, Mr. Okorafor advised all banks and multinational companies in Nigeria to adhere strictly to the provisions of all extant laws and regulations of Nigeria in their foreign exchange transactions.

He warned that failure by the management of banks and companies to abide by the existing guidelines would be appropriately sanctioned, which sanctions may include denial of access to the Nigerian foreign exchange market.

Details of the Investigations

CBN’s letter to MTN says:

Our investigation also revealed the following, among others:

The shareholders of your company invested the sum of $402,590,261.03 in the company from 2001 to 2006;
The investment was carried out through the inflow of foreign currency cash transfers and equipment importation, which was evidenced by the CCIs issued by Standard Chartered Bank (SCB), Citi Bank (CB) and Diamond Bank (DB);

iii. The CCIs issued at the time of the investment by the above banks to your organization in respect of the $402,590,261.03 showed that $59,436,923.44 was invested as shareholders’ loan and $343,153,339.56 as equity;

However, a review of your organization’s financial statements for the year ended December 31, 2007 revealed that $399,594,146.00 was recorded/invested as shareholders’ loan and $2,996,117.00 as equity investment, in accordance with the shareholder’s agreement but contrary to the CCIs issued by the banks in (iii) above;
Following a request by your organization through Standard Chartered Bank for CBN’s approval to convert the shareholder’s loan to preference shares, an approval-in-principle was granted vide our letter dated November 13, 2007; with the grant of final approval made subject to the fulfillment of the following conditions by your organization.

Implementation of the decision in item 5B of your board resolution dated November 08, 2007 and submission of documentary evidence to that effect to the Director, Trade and Exchange Department of the Central Bank of Nigeria; and
Provision of an undertaking that no remittance for either interest or principal repayment would be made to the shareholders from the date of the loan to the date they were converted to preference shares.
In spite of the non-fulfillment of the conditions in (v) above and consequently, the non-issuance of a final approval by the CBN, your organization converted the shareholders’ loan to preference shares with Standard Charted Bank issuing new CCIs in respect of the illegal conversion;

vii. The action of your banker in aiding your organisation in the illegal conversion of the shareholders’ loan was later described by SCB in a letter to the CBN dated December 10, 2009 as an “unintended omission”; and

viii. On account of the illegal conversion of your shareholders’ loan to preference shares (interest free loan) of $399,594,146.00, the sum of $8,134,312,397.63 was illegally repatriated on behalf of your company by the aforementioned banks between 2007 and 2015.

CBN’s Letter to Standard Chartered bank says:

Our investigation also revealed the following, among others:

The shareholders of MTN Nigeria Communications Limited invested the sum of $402,590,261.03 in the company from 2001 to 2006;

The investment was carried out through the inflow of foreign currency cash transfers and equipment importation, which was evidenced by the CCIs issued by your bank, Citi Bank (CB) and Diamond Bank (DB) at the initial stage of the investment.

iii. The CCIs issued at the time of investment by your bank along with the other banks in respect of the $402,590,261.03 showed that $59,436,923.44 was recorded/invested as shareholders’ loan and $343,153,339.56 as equity. This position was, however, contrary to the position in the financial statements of MTN Nigeria Communications Limited for the year ended December 31, 2007, which revealed that $399,594,146.00 was invested as shareholders’ loan and $2,996,117.00 as equity investment, in accordance with the shareholder’s agreement but contrary to the CCIs issued by your bank, Citi Bank (CB) and Diamond Bank (DB). Your action in this regard constituted a rendition of false returns to the Central Bank of Nigeria.

Your bank subsequently applied to the CBN on behalf of MTN Nigeria Communications Limited for the conversion of the shareholder’s loan to preference shares, for which an approval-in-principle was granted vide our letter dated November 13, 2007 with the grant of final approval made subject to the fulfillment of the following conditions by MTNN:

Implementation of the decision in item 5B of MTN Nigeria Communications Limited board resolution dated November 8, 2007 and submission of documentary evidence to that effect to the Director, Trade and Exchange Department of the Central Bank of Nigeria; and

Provision of an undertaking that no remittance for either interest or principal repayment would be made to the shareholders from the date of the loan to the date they were converted to preference shares.

In spite of the non-fulfillment of the above conditions in (iv) above and consequently, the non-issuance of a final approval by the CBN, your bank issued new CCIs in support of the illegal conversion of the shareholders’ loan to preference shares; an action that was later described by your bank in a letter to the CBN dated December 10, 2009, as an “unintended omission”; and

On account of the illegal conversion of the shareholders loan to preference shares (interest free loan) of $399,594,146.00, the sum of $8,134,312,397.63 was illegally repatriated by your bank and the other banks on behalf of MTN Nigeria Communications Limited between 2007 and 2015.

Other findings from our investigation included the following:

Your bank issued three (3) CCIs outside the regulatory 24 hours without the approval of the CBN;

In contravention of Memorandum 24 (ii) of the Foreign Exchange Manual, which requires that CCIs should be transferred based on customer’s instructions to a bank of the customer’s choice along with the transaction history of the CCI, you provided confirmation to two other banks, Citibank and Diamond Bank, instead of transferring the CCIs to them as required by the Foreign Exchange Manual.

The two banks on the strength of your confirmation subsequently remitted various sums as dividend for MTN Nigeria Communications Limited at different times; and

Your bank failed to issue a letter of indemnity to the CBN against double remittance in respect of ten CCIs transferred by Diamond Bank and Citibank to your bank as required under subsection 5(iii) of Memorandum 24 of the Foreign Exchange Manual.

Upon the conclusion of the investigation, the Committee of Governors of the Central Bank of Nigeria met with the management of your bank and the other banks as well as representatives of MTN Nigeria Communications Limited in Lagos on May 25, 2018. This was to give all the parties fair hearing, towards taking an informed decision on the matter.

CBN’s letter to Stanbic-IBTC says:

Our investigation also revealed the following, among others:

The shareholders of MTN Nigeria Communications Limited invested the sum of $402,590,261.03 in the company from 2001 to 2006;

The investment was carried out through the inflow of foreign currency cash transfers and equipment importation, which was evidenced by the CCIs issued by Standard Chartered Bank, Diamond Bank and Citibank, out of which eight of the CCIs totaling $377,216,508.30 were transferred to your bank by Standard Chartered Bank. Consequently, your bank repatriated the sum of $929,051,331.83 as proceeds of divestment from the CCIs valued at $42,704,408.61.

iii. On account of the illegal conversion of the shareholders loan to preference shares (interest free loan) of $399,594,146.00, the sum of $8,134,312,397.63 was illegally repatriated by your bank and the other banks on behalf of MTN Nigeria Communications Limited between 2007 and 2015.

Other findings from our investigation included the following:

a). Your bank falsely reported thirty five CCIs valued $313,683,925.84 inappropriately as “other purchases” in your MTR 203 returns for February 2008 instead of “capital importation”;

b) Your bank issued eight CCIs of $58,359,616.67 in respect of foreign exchange sourced locally as shareholders’ loan. This constituted a contravention of the requirement of Section 15 of the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act, 1995 and Memorandum 20 (1.3) (iii) of the Foreign Exchange Manual, which stipulate that CCIs should only be issued on capital imported;

c). Your bank issued eight CCIs for capital inflows in form of machinery outside the 24 hours regulatory requirement of receipt of shipping documents in contravention of paragraph 4.1.1 (IV) of the Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for Fiscal Years 2012 to 2013;

d) Your bank failed to issue a letter of indemnity to the CBN against double remittance in respect of twenty CCIs transferred by Standard Chartered Bank to your bank as required under subsection 5(iii) of Memorandum 24 of the Foreign Exchange Manual; and

e) Your bank repatriated dividends totaling $905,260.20 in respect of CCIs illegally issued on the strength of locally sourced capital.

CBN’s letter to CitiBank says:

Our investigation also revealed the following, among others:

The shareholders of MTN Nigeria Communications Limited invested the sum of $402,590,261.03 in the company from 2001 to 2006;
The investment was carried out through the inflow of foreign currency cash transfer and equipment importation evidenced by the CCIs issued by your bank, Standard Chartered Bank and Diamond Bank;

iii. The CCIs issued by your bank along with the other banks in respect of the $402,590,261.03 showed that $59,436,923.44 was recorded/invested as shareholders’ loan and $343,153,339.56 as equity at the time of the investment. This position was, however, contrary to the position in the financial statements of MTN Nigeria Communications Limited for the year ended December 31, 2007, which showed that $399,594,146.00 was invested as shareholders’ loan and $2,996,117.00 as equity investment, in accordance with the shareholder’s agreement but contrary to the CCIs issued by your bank, Standard Chartered Bank (SCB) and Diamond Bank (DB). Your action in this regard constituted a rendition of false returns to the Central Bank of Nigeria;

Your bank issued seven (7) CCIs to MTN Nigeria (MTNN) totaling $42,126,803.04 that were subsequently transferred to Standard Chartered Bank Limited at the request of your customer (MTNN) on February 6, 2006, which constituted part of the CCIs that were consequently irregularly re-issued;

Four of the CCIs issued by your bank evidencing the inflow of capital imported as cash were issued outside the period of 24 hours allowed by regulation upon the receipt of inflow, in flagrant contravention of Memorandum 22 of the Foreign Exchange Manual;

Your bank failed to comply with extant regulations on the issuance of letter of indemnity to the CBN in addition to forwarding the transaction history of the CCIs to the CBN, as provided in Memorandum 24(5)(ii)(b) of the Foreign Exchange Manual in respect of the CCIs received by your bank from Standard Chartered Bank; and

vii. Your bank purchased $535,000,000 on the basis of photocopies of Form “A” bearing the name of Standard Chartered Bank as the applicant bank and the referenced CCIs in contravention of Memorandum 24 (4) (a) of the Foreign Exchange Manual 2006.

CBN’s letter to Diamond Bank says:

Our investigation also revealed the following, among others:

The shareholders of MTN Nigeria Communications Limited invested the sum of $402,590,261.03 in the company from 2011 to 2006;

The investment was carried out through the inflow of foreign currency cash transfer and equipment importation, which was evidenced by the CCIs issued by your bank, Citi Bank and Standard Chartered Bank;

III. The CCIs issued illegally by your bank along with the other banks in respect of the $402,590,261.03 showed that $59,436,923.44 was recorded/invested as shareholders’ loan and $343,153,339.56 as equity. This position was, however, contrary to the position in the financial statements of MTN Nigeria Communications Limited for the year ended December 31, 2007, which showed that $399,594,146.00 was invested as shareholders’ loan and $2,996,117.00 as equity investment, in accordance with the shareholder’s agreement but contrary to the CCIs issued by your bank, Citi Bank (CB) and Standard Chartered Bank (SCB). Your action in this regard constituted a rendition of false returns to the Central Bank of Nigeria; and

On account of the illegal conversion of the shareholders loan to preference shares (interest free loan) of $399,594,146.00, the sum of $8,134,312,397.63 was illegally repatriated by your bank and the other banks on behalf of MTN Nigeria Communications Limited, within a period of six years.

Other findings from our investigation included the following:

a) Your bank issued three CCIs in favour of Dantata Investment for the sum of $5million without converting the foreign exchange received into Naira as required by our regulations. On the basis of these illegally issued CCIs, your bank repatriated the sum of $102,545,336.77 in respect of these CCIs;

b) A further review of the CCIs also showed that no Form “M” was opened as evidence of the utilization of the FX for the importation of goods (as “Not valid for FX”) into the country;

c) Your bank remitted the sum of $348,914,501.38 as dividend to MTN Nigeria Communications Limited offshore corporate shareholders without any documentary evidence of the audited account of the company to justify the basis of the payment of the dividend declared and paid by MTNN. This action was a violation of the provision of Memorandum 24(4)(b) of the Foreign Exchange Manual;

d) Your bank failed to indemnify SCB for losses and/or liabilities that may arise from the use of the CCIs you transferred to SCB in violation of the provisions of the Foreign Exchange Manual 2006;

e) Your bank issued three CCIs outside the regulatory 24 hours without the approval of the CBN contrary to provisions of Memorandum 22 of the Foreign Exchange Manual 2006; and

f) Your bank illegally remitted the sum of $352,222,358.39 on behalf of Standard Chartered Bank and Stanbic IBTC Bank in respect of the various CCIs issued to MTN Nigeria Communications Limited.

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E-Financial

Malpass, Ex World Bank Chief Raises Alarm over Nigeria’s Secretive Debt Structures

Published

4 hours ago

July 29, 2026

Ebere Melum-Nwogbo

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David Malpass, former World Bank President, has warned that Nigeria’s increasing reliance on collateral-backed and complex borrowing arrangements could make any future debt restructuring more difficult and discourage investors if the country’s debt position becomes unsustainable.

Malpass, Ex World Bank Chief Raises Alarm over Nigeria’s Secretive Debt Structures

David Malpass, former World Bank President

Malpass, who was 13th president of the World Bank Group, from April 9, 2019 – June 1, 2023, raised the concern in a World Bank Policy Research Working Paper titled Public Debt and Central Banks, which was based on the Stanley Fischer Memorial Lecture delivered at the World Bank Group’s Annual Bank Conference on Development Economics.

He said increasingly sophisticated collateralised transactions in developing economies, including Nigeria, Angola and Senegal, were creating what he described as “a new race toward seniority in the capital structure.”

In sovereign lending, collateralised creditors may gain priority over other lenders by tying repayment to specific assets, revenues or financial instruments. Malpass warned that the expansion of such arrangements could leave fewer resources available for unsecured creditors and make negotiations more contentious during a debt crisis.

He also questioned the growing use of guarantee products provided by multilateral development banks, arguing that their effectiveness had not been adequately tested during sovereign debt restructurings.

According to him, private lending to distressed or high-risk governments has become less transparent, with some commercial agreements containing non-disclosure clauses that prevent citizens, investors and other creditors from understanding their full implications.

Malpass said debt reconciliation efforts were already being hindered by limited access to sovereign loan contracts, particularly agreements linked to Chinese lending programmes.

The former World Bank chief also criticised the international debt restructuring system, arguing that existing mechanisms had failed to provide timely and meaningful relief to heavily indebted countries.

Beyond debt transparency, Malpass identified exchange rate stability as an important requirement for Nigeria’s economic growth.

He grouped Nigeria with Ethiopia and Egypt among countries where multiple exchange rates and poorly managed currency systems had transferred wealth from low-income earners to politically or economically privileged groups.

He estimated Nigeria’s per capita income at about $1,500, or roughly $4 a day, while noting that median income was likely to be considerably lower because wealth remained concentrated among a small proportion of the population.

Malpass argued that the benefits of credible currency reform could be substantial, pointing to the significantly higher earnings of Nigerians working abroad as evidence of the country’s unrealised productive potential.

He disclosed that, while serving as World Bank president, he held several meetings with Nigeria’s previous administration, cabinet officials and the bank’s Nigeria team to identify reforms capable of accelerating economic growth.

Those discussions highlighted currency stabilisation, exchange rate unification, oil sector reforms, tax changes and agricultural liberalisation, particularly in rice production, as priorities.

Malpass said the reforms could transform Nigeria’s economy in a manner comparable to the policy changes that helped launch China’s sustained period of rapid growth in the 1990s.

Malpass’ warning comes amid continuing scrutiny of Nigeria’s use of unconventional financing to refinance expensive obligations and cover budget deficits.

The International Monetary Fund and Fitch Ratings had earlier raised concerns about the Federal Government’s proposed $5 billion Total Return Swap with First Abu Dhabi Bank, warning that derivatives-based sovereign borrowing could obscure the country’s true debt exposure and complicate future restructuring.

Despite those concerns, Nigeria reportedly accessed an initial tranche of about $1.5 billion from the arrangement.

The controversy follows years of debate over the transparency of Nigeria’s borrowing, including loans linked to crude oil revenues, infrastructure assets and bilateral agreements whose full terms were not always publicly disclosed. With debt-service costs consuming a substantial share of government revenue, the latest warning reinforces concerns that short-term financing relief could create more difficult obligations for future administrations.

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E-Financial

Ecobank Nigeria Launches Podcast to Champion African Entrepreneurship, Business Growth

Published

4 hours ago

July 29, 2026

Chike Onwuegbuchi

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Ecobank Nigeria has launched Scaling Up!!!, its flagship business storytelling podcast designed to inspire, educate and empower entrepreneurs, founders, business leaders and the next generation of African innovators through authentic conversations with some of the continent’s most accomplished business personalities.

The podcast, which will be available on Ecobank Nigeria’s official YouTube channel and other major digital streaming platforms, reinforces the bank’s commitment to supporting businesses beyond banking by creating a platform where entrepreneurs can learn from the experiences of successful founders, creatives and industry leaders who have built thriving enterprises across diverse sectors.

Featuring compelling conversations on entrepreneurship, leadership, innovation, resilience and business growth, Scaling Up!!! offers practical lessons and real-life insights that aspiring and established entrepreneurs can apply in building sustainable businesses.

The inaugural season features an impressive lineup of distinguished guests, including beauty entrepreneur and Founder/CEO of Beauty by AD, Adeola Adeyemi (Diiadem); renowned filmmaker and Founder of Golden Effects Pictures, Kunle Afolayan; veteran music producer and Founder of Coded Tunes, ID Cabasa; luxury fashion entrepreneur, Ejiro Amos Tafiri; celebrated commercial photographer, Emmanuel Oyeleke; Co-founder and Lead Interior Designer of Siriano Limited, Adewunmi Adegbola; and Founder of Windsor Gallery and Nahous Creative Hub, Richard Vedelago.

Each episode explores the guests’ entrepreneurial journeys, highlighting the opportunities they embraced, the challenges they overcame and the strategies that enabled them to build enduring brands and successful businesses.

Speaking on the launch, Austen Osokpor, Head, Marketing & Corporate Communications, Ecobank Nigeria, said: “Scaling Up!!! reflects Ecobank’s belief that empowering entrepreneurs goes beyond providing financial solutions.

“Through authentic storytelling and insightful conversations, we are creating a platform where business owners can learn directly from people who have successfully navigated the realities of building sustainable enterprises. It is another way we are reinforcing our commitment to driving entrepreneurship, innovation and economic growth across Africa.”

Also speaking, Head, SMEs, Partnerships & Collaborations, Ecobank Nigeria, Omoboye Odu, said: “Entrepreneurs learn best from the experiences of those who have walked the journey before them. Scaling Up!!! provides practical insights, inspiration and valuable lessons that will help founders make better business decisions, overcome challenges and unlock new opportunities for growth.

“The podcast further strengthens Ecobank’s role as a trusted partner supporting SMEs at every stage of their entrepreneurial journey.”

Sharing the creative vision behind the initiative, the Producer of Scaling Up!!!, Jemimah Ugiagbe, said: “Our goal was to create more than just another business podcast. We wanted honest, engaging and relatable conversations that reveal the realities behind success, the setbacks, the resilience, the bold decisions, and the lessons that every entrepreneur can learn from.

“Every episode is designed to leave listeners informed, inspired and motivated to build businesses that create lasting impact.”

The podcast further strengthens Ecobank Nigeria’s position as a trusted partner for entrepreneurs by providing a knowledge-sharing platform that extends beyond traditional banking services. GeographicReference

Through meaningful conversations with accomplished founders and innovators, the bank continues to demonstrate its commitment to fostering enterprise development, encouraging innovation and promoting sustainable economic growth across Africa.

Scaling Up!!! is targeted at SMEs, entrepreneurs, founders, startups, business executives, creatives, students and young professionals seeking practical business insights from some of Africa’s most respected industry leaders.

New episodes will be released regularly across Ecobank Nigeria’s YouTube channel and other major podcast streaming platforms, offering audiences thought-provoking conversations on entrepreneurship, leadership, innovation and business growth.

Ecobank Nigeria is a member of the Ecobank Group, the leading pan-African banking institution with operations in 33 African countries and international offices in London, Paris, Beijing, and Dubai.

With over 220 branches, more than 36,000 agency banking locations, and robust digital platforms, Ecobank delivers accessible, affordable, and instant banking services. The bank is strategically positioned to support pan-African trade, particularly under the African Continental Free Trade Area (AfCFTA).

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E-Financial

S&P Global Acquires Agusto & Co. to Strengthen Credit Ratings Across Africa

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4 hours ago

July 29, 2026

Chike Onwuegbuchi

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S&P Global has agreed to acquire a majority stake in Agusto & Co., one of Africa’s oldest and largest domestic credit rating agencies, in a move that signals growing international interest in the continent’s capital markets and credit ecosystem.

According to a joint statement by the rating agencies. The transaction, which is subject to regulatory approvals, will give the global ratings giant a stronger foothold in Africa through Agusto & Co.’s operations in Nigeria, Kenya, Ghana, and Rwanda. Financial terms of the deal were not disclosed.

The acquisition marks one of the most significant investments by a global ratings agency in Africa’s domestic credit ratings market in recent years and comes as governments and companies across the continent increasingly rely on local debt markets to finance infrastructure, corporate expansion, and fiscal deficits.

Yann Le Pallec, president of S&P Global Ratings, said the investment reflects the company’s long-term commitment to Africa’s financial markets.

“We are delighted to partner with Agusto & Co. to strengthen our domestic ratings presence across Africa,” Le Pallec said. “This transaction underscores our commitment to supporting growth and transparency in local credit markets throughout the continent.”

He added that combining S&P Global’s international analytical capabilities with Agusto & Co.’s local market knowledge would help improve credit transparency and support investor confidence across African markets.

Founded more than three decades ago, Agusto & Co. has built a reputation as one of Africa’s leading domestic rating agencies, providing credit ratings on banks, corporates, and other institutions. The company has expanded beyond Nigeria into several African markets and has played a key role in the development of domestic bond markets.

For Agusto & Co., the transaction represents a major milestone in its growth strategy and fulfills a long-held ambition to align with a global ratings institution.

“This partnership is a transformational milestone for Agusto & Co. and African capital markets, fulfilling our late founder’s vision of affiliating with a leading global rating agency,” said Yinka Adelekan, managing director of Agusto & Co.

According to Adelekan, the combination of Agusto’s regional expertise with S&P Global’s international resources and analytical network is expected to create broader opportunities for issuers and investors while supporting more transparent and resilient credit markets across Africa.

Despite the ownership change, Agusto & Co. said it will continue operating as an independent domestic ratings agency, maintaining its own rating methodologies and issuing ratings under applicable regulatory frameworks.

That structure is expected to preserve the agency’s regulatory standing in the jurisdictions where it operates while enabling it to benefit from S&P Global’s technology, research capabilities, and global market expertise.

The acquisition also reflects increasing global interest in Africa’s capital markets, where governments are pursuing domestic borrowing strategies and private companies are seeking alternative sources of long-term financing amid tighter global liquidity conditions.

The transaction is expected to close in the second half of 2026, subject to regulatory approvals and other customary closing conditions. S&P Global said the acquisition is not expected to have a material impact on its financial results.

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