China Offers Increased Lending Support, No Debt Forgiveness Talks with FG - Minister Confirms

According to the Foreign Affairs Minister, Yusuf Tuggar, Nigeria is not in a precarious state and is "not even among the critically indebted nations." This statement aims to reassure stakeholders about Nigeria's financial health.

Despite ongoing proposals for debt forgiveness at the United Nations General Assembly (UNGA), no loans have been cancelled. At the recent 79th session of the UNGA in New York, President Bola Tinubu, represented by Vice President Kashim Shettima, advocated for reforming the international financial system to include "comprehensive debt relief measures, to enable sustainable financing for development." However, these efforts have yet to yield tangible results.

Minister Tuggar emphasized that Nigeria is not currently discussing debt forgiveness with China. Instead, Beijing is willing to lend more money and invest further in Nigeria's economy, particularly in infrastructure development.

He stated, "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."

As of March 2024, Nigeria's external debt stood at N56 trillion ($42 billion), while domestic debt was N65 trillion ($46.29 billion). Despite these figures, Tuggar pointed out that Nigeria's debt-to-GDP ratio does not place it among the most critically indebted nations.

This perspective aligns with historical context; under President Olusegun Obasanjo, Nigeria benefited from massive debt forgiveness from the Paris Club, which granted an $18 billion relief out of the $30.8 billion outstanding at the time.

Additionally, Tuggar mentioned that Nigeria plans to join BRICS+, a nine-member economic and political group, when the timing is appropriate. This move is part of Nigeria's broader strategy to enhance its positioning in global economic forums and attract more investment opportunities.