“Nigeria’s Federal Government Reaffirms Strong Financial Ties with China: No Debt Forgiveness Request Made”

Babatunji Wusu –

The Federal Government of Nigeria has confirmed that it is not seeking debt forgiveness from China, despite ongoing discussions about debt relief in international forums. This clarification was provided by Minister of Foreign Affairs, Yusuf Tuggar, during his appearance on Channels Television’s Sunday Politics program.

Key Points:
– No Debt Forgiveness Negotiations: Tuggar emphasized, “No, that is not what we are discussing with China,” pointing out that Nigeria’s debt-to-GDP ratio does not categorize it among critically indebted nations.
– Advocacy for Global Debt Relief: While Nigeria is advocating for global debt relief measures, particularly at the United Nations General Assembly (UNGA), China has expressed a willingness to provide additional loans and investments in Nigeria’s infrastructure.
– Gradual Process for Debt Forgiveness: Tuggar acknowledged that debt forgiveness is a gradual process that requires sustained engagement, referencing Nigeria’s previous experiences under former President Olusegun Obasanjo. He stated, “The effect that we felt the last time we had debt forgiveness did not just happen with one UNGA.”
– Current Debt Status: According to the Debt Management Office’s Q1 2024 report, Nigeria’s total domestic and external debt amounts to N121.67 trillion ($91.46 billion), underscoring the need for strategic financial partnerships as the government navigates its economic challenges.

In summary, while Nigeria is actively involved in discussions about debt relief, the focus remains on strengthening financial relationships rather than seeking immediate forgiveness from China.