Nigeria advocates for debt relief while China offers increased financial support

• The Nigerian government has announced that China is willing to extend more loans and invest further in the country's infrastructure
• Despite Nigeria's significant debt, the Minister of Foreign Affairs, Yusuf Tuggar, emphasized that the country is not among the critically indebted nations
• At the recent UN General Assembly, Nigeria advocated for comprehensive debt relief measures, but discussions with China focus on additional financial support and investment

In a recent development, the Federal Government of Nigeria has announced that China is willing to extend more loans and invest further in the country's infrastructure.

This was revealed by the Minister of Foreign Affairs, Yusuf Tuggar, during an appearance on Channels Television’s Sunday Politics programme.

China to extend more loans to Nigeria. Photo credit: X/@officialABAT
Source: Twitter

Tuggar emphasized that Nigeria is not among the critically indebted nations and, therefore, is not seeking debt forgiveness from China, its major lender.

"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," he stated.

China prepares to boost infrastructure funding

According to the Debt Management Office (DMO), Nigeria's external debt stock as of March 2024 stood at N56 trillion ($42 billion), while domestic debt was N65 trillion ($46.29 billion).

Despite these figures, Tuggar reassured that Nigeria's debt situation is not precarious. "When you talk about the debt of a developing country, Nigeria is not in that sort of precarious situation," he added.

At the 79th session of the United Nations General Assembly (UNGA) in New York, President Bola Tinubu, represented by Vice President Kashim Shettima, advocated for the reform of the international financial system to include "comprehensive debt relief measures, to enable sustainable financing for development."

However, Tuggar clarified that Nigeria is not in talks with China for debt relief, despite recent meetings between President Tinubu and Chinese President Xi Jinping.

Instead, China is prepared to increase its financial support and investment in Nigeria. "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," Tuggar confirmed.

He also highlighted Nigeria's role on the global stage, noting that the country made presentations at the UN not only for its own interests but also on behalf of Africa, the global South, and other developing nations.

Tinubu's government repays Chinese, IMF loans

Meanwhile, Legit.ng earlier reported that the Nigerian government spent about $1.2 billion servicing foreign debts in the first quarter of 2024, showing the rising debt service burden on the country.

According to data from the Central Bank of Nigeria (CBN), debt service payments have risen steadily over the past years.

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Source: Legit.ng