The Nigerian government has clarified that it is not pursuing debt forgiveness from China, despite ongoing discussions about debt relief at international forums.
Minister of Foreign Affairs Yusuf Tuggar explained that China is willing to extend more loans and invest in Nigeria’s economy, particularly in infrastructure development.
Tuggar made these remarks during a recent appearance on a TV program, addressing concerns regarding Nigeria’s debt situation.
He pointed out that Nigeria’s debt-to-GDP ratio places it among the less indebted nations globally, stating, “When you talk about the debt of a developing country, Nigeria is not in that sort of precarious situation.” He reaffirmed that Nigeria’s discussions with China do not revolve around debt relief but rather focus on potential investments and loans.
At the 79th session of the United Nations General Assembly (UNGA), Nigeria’s Vice President, Kashim Shettima, advocated for comprehensive debt forgiveness for Nigeria and other developing countries. However, Tuggar clarified that while Nigeria supports these global initiatives, it does not currently seek forgiveness specifically for itself.
Tuggar noted the importance of Nigeria’s role as a leader among developing nations, stating, “We speak on behalf of Africa, we speak on behalf of developing nations.”
According to the Debt Management Office (DMO), Nigeria’s domestic and external debt stood at N121.67 trillion (approximately $91.46 billion) as of the first quarter of 2024.
Tuggar highlighted that discussions regarding debt forgiveness are ongoing but represent a gradual process, not an immediate outcome. He referred to Nigeria’s past experiences under former President Olusegun Obasanjo, stating that such relief is a complex issue that requires sustained engagement over time.
Furthermore, Tuggar noted that if accurately accounted for, Nigeria’s GDP would reflect its position as the largest economy in Africa as the National Bureau of Statistics is in the process of rebasing the GDP to include contributions from the informal sector.
