China Open to Expanding Loans and Investments in Nigeria – FG

The Federal Government has clarified that Nigeria is not seeking debt forgiveness from China, despite ongoing discussions about debt relief in international forums.

Yusuf Tuggar, the Minister of Foreign Affairs, emphasized that China is open to providing additional loans and increasing investments in Nigeria’s economy. Tuggar made these remarks during an appearance on Channels Television’s Sunday Politics program, addressing concerns about Nigeria’s debt and its recent engagements with China.

“We are not discussing debt forgiveness with China. When looking at Nigeria’s debt-to-GDP ratio, we are not classified among critically indebted nations,” Tuggar explained.

At the 79th United Nations General Assembly (UNGA) session in New York, Vice President Kashim Shettima, speaking on behalf of President Bola Tinubu, urged global leaders to prioritize debt relief for Nigeria and other developing countries. Despite these efforts, Tuggar acknowledged that achieving debt forgiveness is a gradual process that has not yet materialized at recent UNGA meetings.

He further noted that, during former President Obasanjo’s tenure, Nigeria benefited from debt forgiveness, underscoring that such progress takes time. “Debt forgiveness is a process, not an event. It doesn’t happen overnight. The positive effects we experienced from past debt forgiveness were a result of sustained efforts, not just a single UNGA session,” Tuggar added.

According to the Debt Management Office’s Q1 2024 report, Nigeria’s domestic and external debt stands at N121.67 trillion ($91.46 billion).