China open to Give more loans And investments in Nigeria – FG

Nigeria Clarifies Stance on Debt Forgiveness, China Open to Further Loans and Investments

The Nigerian government has clarified that it is not seeking debt forgiveness from China, despite ongoing discussions on debt relief at international forums. The clarification comes as Nigeria continues to navigate its debt situation and explores avenues for financial support.

In a recent interview on Channels Television‘s Sunday Politics programme, Minister of Foreign Affairs, Yusuf Tuggar, emphasized that Nigeria’s debt situation is not precarious, and the country is not among the critically indebted nations. According to Tuggar, Nigeria’s debt-to-GDP ratio is manageable, and the country is open to further loans and investments from China.

“We are not discussing debt forgiveness with China,” Tuggar stated. “In fact, China is prepared to lend more and invest more in Nigeria’s infrastructure development and other sectors.”

Tuggar’s remarks come as Nigeria has been advocating for debt relief measures globally, including at the United Nations General Assembly (UNGA). At the 79th session of the UNGA in New York, Vice President Kashim Shettima called on world leaders to prioritize debt forgiveness for Nigeria and other developing countries from creditors and multilateral financial institutions.

However, Tuggar noted that debt forgiveness is a gradual process that requires patience and persistence. He pointed out that Nigeria had previously benefited from debt forgiveness under the presidency of Olusegun Obasanjo and emphasized that it takes time to achieve such relief.

According to the Debt Management Office’s Q1 2024 report, Nigeria’s domestic and external debts stood at N121.67 trillion ($91.46 billion). The clarification on Nigeria’s stance on debt forgiveness comes as the government continues to explore ways to manage its debt burden and promote economic growth.

China’s willingness to extend further loans and investments to Nigeria is seen as a significant development in the country’s efforts to address its debt situation. The move could potentially provide a boost to Nigeria’s economy, particularly in areas such as infrastructure development.