President Tinubu Government has denied seeking debt forgiveness from China.
NewsOnline Nigeria reports that the Federal Government of Nigeria has clarified that it is not pursuing debt forgiveness from China, despite ongoing discussions about debt relief in international forums.
This assertion was made by the Minister of Foreign Affairs, Yusuf Tuggar, during an appearance on Channels Television’s Sunday Politics programme.
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Tuggar addressed concerns regarding Nigeria’s debt situation and recent interactions with Chinese officials, stating, “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 further explained that while Nigeria is actively advocating for global debt relief measures, including at the United Nations General Assembly, China remains willing to extend additional loans and increase investments in Nigeria’s economy.
“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 added.
At the 79th session of the UNGA in New York, Vice President, Kashim Shettima, representing President Bola Tinubu, urged world leaders to prioritize debt forgiveness for Nigeria and other developing nations from creditors and multilateral financial institutions.
However, Tuggar noted that the path to debt forgiveness is a gradual process that has not yet materialized in recent discussions at the UNGA.
He recalled Nigeria’s previous experience under former President Olusegun Obasanjo, emphasizing that debt forgiveness is not an instantaneous event but rather a process that requires sustained engagement.
“The effect that we felt the last time we had debt forgiveness did not just happen with one UNGA,” Tuggar explained.
According to the Debt Management Office’s Q1 2024 report, Nigeria’s total domestic and external debts stand at N121.67 trillion ($91.46 billion), highlighting the importance of strategic financial partnerships as the government navigates its economic landscape.