President Bola Tinubu has called for a strong global commitment to debt forgiveness for Nigeria and other developing nations.
Represented by Vice President Kashim Shettima, at the 79th Session of the United Nations General Assembly, UNGA, in New York, Tinubu urged creditors and multilateral financial institutions to prioritize debt relief as a necessary step for economic progress in developing countries.
He emphasized that without such measures, countries in the global South would struggle to achieve meaningful economic growth and development.
Tinubu’s appeal comes in the wake of Nigeria’s soaring debt levels, which, according to the Debt Management Office’s, DMO, first quarter 2024 report, reached N121.67 trillion ($91.46 billion). This debt burden has been exacerbated by currency depreciation, significantly raising borrowing costs and placing a strain on the fiscal health of Nigerian states.
Tinubu warned that the debt crisis was undermining the ability of developing countries to meet the basic needs of their citizens, citing the 122 percent increase in external debt servicing costs across Nigerian states in the first half of 2024.
States like Kaduna and Lagos have been hit hardest, with significant portions of their budgets going towards debt repayments. He argued that comprehensive debt relief must be central to any reforms of the international financial system if sustainable financing for development is to be achieved.
Beyond debt relief, the Nigerian president called for a robust international effort to recover proceeds from corruption and illicit financial flows, urging the return of stolen assets to their countries of origin. He cited the United Nations Convention against Corruption as the guiding framework for these efforts, stressing the importance of eradicating safe havens that facilitate the flow of illicit funds from developing to developed nations.
Tinubu also criticized the rise of nationalism and singularity in global politics, warning that these trends were eroding the collective efforts required to tackle critical challenges such as terrorism, climate change, food crises, and hyper-inflation.
He stressed that the United Nations’ founding principles of multilateralism—based on peace, sustainable development, and human rights—were at risk of being weakened by countries prioritizing their national interests over global cooperation. According to Tinubu, the persistence of global problems like inequality, poverty, racial discrimination, and armed conflicts highlighted the international community’s failings rather than achievements.
The president reaffirmed Nigeria’s commitment to multilateralism, a stance it has held since joining the United Nations as its 99th member-state 65 years ago. He urged world leaders to revisit the core objectives of the UN and work towards sustaining the global body’s relevance in addressing pressing international challenges.
Turning his attention to Africa, Tinubu expressed deep concern over the resurgence of military coups and unconstitutional changes of government in some African countries. He linked these developments to the fragility of democracy when not supported by economic growth, peace, and security. He stressed that these issues should be at the forefront of deliberations during the UNGA session, as the slow pace of democratic governance has led to frustration among citizens in African cities and villages.
In conclusion, Tinubu called for reforms in the international financial architecture and the establishment of a transparent and fair multilateral trading system. He expressed hope that the adoption of the “Pact for the Future” would lead to concrete measures to address the challenges faced by developing and least-developed nations. By reforming the global financial and trading systems, Tinubu believes that the global South can reposition its economies, reduce debt burdens, and unlock opportunities for sustainable development.
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