The Federal Government has revealed that it has not taken any step to ask China for debt forgiveness, despite the discussions at international forums.
The Minister of Foreign Affairs, Yusuf Tuggar, who gave the clarifications, noted that Beijing had expressed its willingness to offer Nigeria more loans and make more investments in the country to boost the Nigerian economy.
The minister gave the clarification when he made a special appearance on Channels Television’s Sunday Politics programme, have responded to questions on the issues sorrunding the amount of debt owed by the country and the conversations that have been had with China.
He explained that the government was not starting any discussion on debt cancellation with China, he noted that a look at the debt-to-GDP ratio of Nigeria, the country was not among the nations that have been regarded as critically indebted country among other nations.
The minister strongly noted that while Nigeria has pushed for debt relief measures globally, including at the United Nations General Assembly, China remains prepared to strengthen its financial commitments to Nigeria.
During the 79th session of the UNGA in New York, which has just been concluded the Vice President Kashim Shettima, who toke the seat of the Vice President at the event has admonished world leaders to look at granting counties some sort of debt forgiveness including Nigeria he noted that the debt forgiveness should come from multilateral financial institutions.
He cited the country’s benefit from debt forgiveness under President Obasanjo. He explained that it must be achieved during critical processes, not at a single discussion. He noted that the country will need to engage in the discussions to ensure that the forgiveness is achieved, but it could not happen overnight.
The Debt Management Office’s Q1 2024 report showed that Nigeria’s domestic and external debts stood at N121.67tn ($91.46bn).
