The Federal Government of Nigeria has clarified that it is not currently in discussions with China for debt forgiveness, despite ongoing efforts to secure comprehensive debt relief on the international stage.
Minister of Foreign Affairs Yusuf Tuggar, speaking on Channels Television’s Sunday Politics programme, stated that while Nigeria has previously advocated for debt forgiveness at the United Nations General Assembly (UNGA), no debt relief agreements were reached during this year’s assembly.
Tuggar also highlighted that Nigeria’s economic standing, including its debt-to-GDP ratio, does not place the country among critically indebted nations. He further noted that China remains willing to lend more money and invest in Nigeria’s infrastructure development, dismissing any notion of current talks regarding debt cancellation with Beijing.
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Nigeria has long called for reforms in the international financial system, and at the 79th UNGA, Vice President Kashim Shettima, representing President Bola Tinubu, reiterated the call for comprehensive debt relief to support sustainable development. However, Tuggar pointed out that debt relief is a gradual process, referring to the 2005 debt forgiveness campaign under former President Olusegun Obasanjo that resulted in $18 billion in debt relief from the Paris Club.
Despite Nigeria’s total external debt reaching N56 trillion ($42 billion) as of March 2024, Tuggar emphasized that the country remains in a stable position and is continuing discussions for economic partnerships, including potential membership in the BRICS+ group.
The foreign minister’s remarks reaffirm Nigeria’s position that while debt relief is a goal, the country’s relationship with China remains focused on further financial cooperation and investments in key sectors.
