According to Channels TV, the Nigerian government has clarified that it is not in discussions with China regarding debt forgiveness, emphasizing that Beijing remains willing to extend more loans and invest further in the country’s infrastructure development. This was revealed by the Minister of Foreign Affairs, Yusuf Tuggar, during an interview on Channels Television’s Sunday Politics.
While Nigeria has previously called for global debt relief, most recently at the 79th session of the United Nations General Assembly (UNGA) in New York, Tuggar confirmed that no bilateral or multilateral loans have been forgiven following this year’s event. At the UNGA, President Bola Tinubu, represented by Vice President Kashim Shettima, advocated for reform in the international financial system, including comprehensive debt relief measures to support sustainable development.
Addressing questions about debt negotiations with China, especially following Tinubu’s meeting with Chinese President Xi Jinping earlier this month, Tuggar stated that the discussions were not centered on debt relief. He further dismissed concerns about Nigeria’s debt burden, noting that the country’s debt-to-GDP ratio is not alarming compared to other developing nations.
“When you talk about the debt of a developing country, Nigeria is not in that sort of precarious situation,” Tuggar said. “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.”
According to the Debt Management Office (DMO), Nigeria’s external debt stood at N56 trillion ($42 billion) as of March 2024, while domestic debt was recorded at N65 trillion ($46.29 billion). China is one of Nigeria’s significant creditors, but the Nigerian government is focusing more on securing additional financial support and investments rather than debt relief.
The minister also touched on Nigeria’s potential membership in BRICS+, a group of emerging economies that includes Brazil, Russia, India, China, and South Africa. Tuggar suggested that Nigeria would join the expanded BRICS bloc when the time is right, indicating that diplomatic efforts are ongoing to align the country with international economic powerhouses.
Historically, Nigeria has had success with debt relief. In 2005, under President Olusegun Obasanjo, the country negotiated a major debt cancellation deal with the Paris Club, a group of official creditors. Nigeria secured $18 billion in debt forgiveness and paid $12.4 billion to settle arrears and outstanding balances, marking a significant milestone in its economic recovery.
Despite this history, Tuggar reiterated that Nigeria is not seeking debt forgiveness from China at present, instead focusing on future investments and loans to fuel the nation’s economic growth.
