The Federal Government of Nigeria has officially stated that it is not seeking debt forgiveness from China, amid ongoing discussions about debt relief in various international forums. This clarification was provided by Minister of Foreign Affairs, Yusuf Tuggar, during his appearance on Channels Television’s Sunday Politics program.
Tuggar addressed concerns about Nigeria’s debt situation and recent engagements with Chinese officials, asserting, “No, that is not what we are discussing with China. When it comes to the issue of debt, our debt-to-GDP ratio shows we are not among the critically indebted nations.”
While Nigeria is advocating for global debt relief measures, including discussions at the United Nations General Assembly (UNGA), Tuggar emphasized that China is open to extending more loans and increasing its investments in Nigeria’s infrastructure and economy. “China is prepared to lend more; China is prepared to invest more in Nigeria,” he stated.
At the 79th session of the UNGA in New York, Vice President Kashim Shettima, representing President Bola Tinubu, called on world leaders to prioritize debt forgiveness for Nigeria and other developing nations from creditors and multilateral financial institutions. However, Tuggar pointed out that the process of achieving debt forgiveness is gradual and has not yet yielded results in recent discussions.
He referred to Nigeria’s prior experience under former President Olusegun Obasanjo, emphasizing that debt forgiveness requires ongoing engagement rather than being an instantaneous solution. “The effects we felt last time we had debt forgiveness did not just happen with one UNGA,” Tuggar remarked.
According to the Debt Management Office’s Q1 2024 report, Nigeria’s total domestic and external debts amount to N121.67 trillion ($91.46 billion), underscoring the necessity for strategic financial partnerships as the government navigates its economic challenges.
