DataPro Limited, a rating agency in Nigeria heavily focused on technology, has underscored the importance of speeding up the credit Culture to foster economic development in Nigeria. During the 2nd Annual Media Training program, titled Credit Rating and Investigative Journalism, DataPro’s COO, Prince Oladele Adeoye, emphasized the importance of improved credit access for Small and Medium-sized Enterprises (SMEs) in boosting the growth of the economy of Nigeria. He stressed the need for these businesses to understand how to access the Capital Market for further growth.
During the discussion, Adeoye emphasized the vital role that Credit Rating Agencies play in maintaining the stability of the financial markets, stating that their expertise is crucial for ensuring the market’s integrity. He believes that credit rating agencies serve a greater purpose than simply assessing the financial reliability of an entity. In his opinion, they offer important information on market trends and possible Investment dangers. Credit rating agencies have a significant impact on macroeconomic conditions, he stated, emphasizing their influence on the efficiency, stability, and trustworthiness of financial markets.
Their significance on the macroeconomic scale is vast.
Adeoye, the Chief Credit Officer of the company, elaborated that the rating process involves evaluating the financial status, business operations, management capabilities, regulatory compliance, and Sustainability practices of an entity to assess its creditworthiness. This process is distinct from an audit and aims to inform decisions regarding credit evaluations. Credit Rating Agencies (CRAs) assess and assign credit ratings to evaluate the financial stability and reliability of debt instruments and the entities that issue them, such as corporations and governments.
Also, credit risk ratings are determined for entities through a thorough examination of both quantitative and qualitative factors. These ratings reflect the probability of a borrower either defaulting on a Loan or successfully repaying it with interest. Their significance on the macroeconomic scale is vast, extending to various financial instruments like Bonds, Commercial Paper (CP), and State securities. Adeoye highlighted the importance of the debt subsector in the capital market, emphasizing that it offers entrepreneurs and business owners a reliable and effective source of funding, in addition to traditional investments in equities and shares.
It is important for the media to expand its focus.
The chief rating officer at DataPro suggested that it is important for the media to expand its focus and actively advocate for strong corporate governance, ethical principles, and behaviours that can have a positive influence on business practices and operations. He emphasized the importance of the media delivering prompt and precise information that has the potential to safeguard the integrity of Nigeria’s financial markets by means of investigative reporting. He delved deeper into the significance of the media in determining credit ratings.
He stated that key elements such as impartiality, market analysis, autonomy, monitoring, data analysis, explanation of numbers, and investigative reporting play a crucial role. DataPro is widely recognized as a top-tier consulting firm in Nigeria, specializing in Compliance, Corporate Governance, and Fraud Risk Management with a wealth of experience. DataPro, founded in 1995, has always focused on delivering services for compliance, third-party verification, business information reports, and credit ratings globally, serving clients in Nigeria and beyond with dedication to their vision.
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In order to mitigate credit risks and ensure the reliability of potential trading partners, individuals and businesses can benefit from assistance in identifying profitable customers and effectively managing market demands. Its goal is to ensure reliable and up-to-date data and business information is easily accessible for individuals, companies, government agencies, and non-profit organizations worldwide. It aspires to be the premier information company in all of Africa, known for its adaptability, influence, and responsiveness, setting the standard for others to follow.