Nigeria’s Minister of Foreign Affairs, Yusuf Tuggar, has made it clear that the country is not discussing debt forgiveness with China. This announcement comes despite Nigeria’s ongoing efforts to secure debt relief through the United Nations General Assembly (UNGA).
Tuggar made this disclosure on Sunday Channels Television’s Sunday Politics programme.
Debt Burden
As of March 2024, Nigeria’s external debt stands at N56trn ($42bn), while domestic debt is at N65trn ($46.29). China is one of Nigeria’s major lenders, but Tuggar emphasized that Nigeria’s debt-to-GDP ratio does not categorize it among critically indebted nations.
No Debt Forgiveness Talks
Tuggar stated, “No, that is not what we are discussing with China… China is prepared to lend more, China is prepared to invest more in Nigeria in terms of infrastructure development and other things.
“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.”
This revelation contrasts with Nigeria’s previous efforts to secure debt forgiveness, including President Bola Tinubu’s recent push for comprehensive debt relief measures at the 79th UNGA session.
History of Debt Relief
In 2005, Nigeria benefited from debt forgiveness under President Olusegun Obasanjo’s administration, with the Paris Club granting $18bn in debt relief. Nigeria paid $12.4bn to Paris Club creditors as part of the agreement.
