The Federal Government of Nigeria has confirmed that it is not in discussions with China regarding debt forgiveness. Instead, China is reportedly prepared to increase its financial support and investments in Nigeria’s economy.
No Progress on Debt Relief at UN General Assembly
Foreign Affairs Minister Yusuf Tuggar made these statements during an appearance on Channels Television’s Sunday Politics program. Despite ongoing proposals for debt forgiveness presented by Nigeria at the United Nations General Assembly (UNGA) for several years, no agreements have been reached.
At the recent 79th UNGA in New York, President Bola Tinubu, represented by Vice President Kashim Shettima, advocated for reforms in the international financial system to include comprehensive debt relief measures, essential for sustainable development financing.
Long Process for Debt Forgiveness
When asked if Nigeria’s multilateral or bilateral loans had been cancelled during this year’s UNGA, Tuggar pointed to the historical context of Nigeria’s debt relief efforts. He recalled the debt forgiveness Nigeria benefited from under President Obasanjo, explaining that such processes take time and require consistent engagement at international forums. “These things don’t happen overnight,” he noted.
Nigeria’s Current Debt Situation
As of March 2024, Nigeria’s external debt was reported at N56 trillion (approximately $42 billion), with domestic debt at N65 trillion (about $46.29 billion), according to the Debt Management Office (DMO). In response to questions about talks with China regarding debt relief, Tuggar clarified that the discussions were focused on further financial cooperation. He emphasized that Nigeria’s debt-to-GDP ratio does not place it among critically indebted nations.
China’s Commitment to Invest in Nigeria
Tuggar confirmed that China is willing to provide additional loans and invest in infrastructure development within Nigeria. He stated, “When you talk about the debt of a developing country, Nigeria is not in that sort of precarious situation.”
Future Prospects with BRICS+
Furthermore, the minister announced that Nigeria plans to join BRICS+, a coalition of nine economic and political nations, at an appropriate time, reflecting the country’s aspirations for stronger international partnerships.
