The Federal Government has announced that China is open to providing additional loans to Nigeria and increasing its investments in the country’s infrastructure.
This was revealed by the Minister of Foreign Affairs, Yusuf Tuggar, during an interview on Channels Television’s Sunday Politics.
Tuggar clarified that Nigeria is not classified among the heavily indebted nations and, as such, is not currently negotiating debt forgiveness with China, its major lender.
According to the Debt Management Office (DMO), as of March 2024, Nigeria’s external debt amounted to N56 trillion ($42 billion), while domestic debt stood at N65 trillion ($46.29 billion). China remains one of Nigeria’s largest creditors.
During a recent meeting between Bola Tinubu, represented by Vice President Kashim Shettima, and Chinese President Xi Jinping, Nigeria advocated for reforms to the global financial system, including “comprehensive debt relief measures” to support sustainable development financing.
Despite these calls for reform, the minister clarified that Nigeria is not seeking debt relief from China at this time.
Instead, China has expressed a willingness to extend further loans and expand its investments in Nigeria’s economy.
Tuggar said, “No, that is not what we are discussing with China. And when it comes to the issue of debt, look at the debt-to-GDP ratio of Nigeria, we are not even among the critically indebted nations.
“When you talk about the debt of a developing country, Nigeria is not in that sort of precarious situation.
“As a matter of fact, They are prepared to lend more, China is prepared to invest more in Nigeria in terms of infrastructure development and other things,” he said.
He stated that Nigeria’s presentations at the UN were not driven solely by self-interest, but also reflected the nation’s advocacy for Africa, the global South, and developing countries.
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