The Nigerian government has clarified that it is not in discussions with China regarding debt forgiveness.
Instead, Beijing has revealed its willingness to extend further loans and invest more in Nigeria’s economy.
This was revealed by the Minister of Foreign Affairs, Yusuf Tuggar, during an appearance on Channels Television’s Sunday Politics programme.
Despite Nigeria’s ongoing appeals for debt forgiveness at the United Nations General Assembly (UNGA) over the years, these efforts have yet to yield results.
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At the recent 79th session of the UNGA in New York, President Bola Tinubu, represented by Vice President Kashim Shettima, advocated for reforms in the international financial system, including comprehensive debt relief measures to support sustainable development financing.
When questioned about the cancellation of any multilateral or bilateral loans at this year’s UNGA, the foreign minister explained, “Under President Obasanjo, we benefited from debt forgiveness.
“It’s a process; it’s not just an event, it takes time but you have to be there, you have to be present, and then these things happen, they don’t happen overnight. The effect that we felt the last time we had debt forgiveness did not just happen with one UNGA.”
According to the Debt Management Office (DMO), as of March 2024, Nigeria’s external debt stood at N56 trillion ($42 billion), with domestic debt at N65 trillion ($46.29 billion).
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When asked if Nigeria was negotiating debt relief with China, given recent meetings between Tinubu and Chinese President Xi Jinping, the minister responded, “No, that is not what we are discussing with China. And when it comes to the issue of debt, look at the debt-to-GDP ratio of Nigeria, we are not even among the critically indebted nations.
“When you talk about the debt of a developing country, Nigeria is not in that sort of precarious situation. As a matter of fact, China is prepared to lend more, China is prepared to invest more in Nigeria in terms of infrastructure development and other things.”
The minister also mentioned that Nigeria would join BRICS+, a nine-member economic and political bloc, at an appropriate time.
As of December 2004, Nigeria’s total debt was $36 billion (N4.8 trillion at the exchange rate of N134/$1), with $30.84 billion owed to the Paris Club.
The Paris Club, an official group of creditor nations, was formed in 1956 and includes countries such as the UK, US, France, Germany, Japan, and the Netherlands.
Nigeria’s debt relief campaign under President Olusegun Obasanjo in 2005 resulted in the Paris Club granting $18 billion in debt relief, with Nigeria paying $12.4 billion to settle the remaining arrears.
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