Nigeria, Other African Nations Intensify Efforts to Tackle Mounting Debt

African nations, including Nigeria, are ramping up strategies to address the growing debt crisis that has plagued the continent in recent years. This issue took center stage at the recently launched Debt Management Forum for Africa in Abuja, where finance ministers and stakeholders deliberated on actionable solutions to mitigate debt distress.

The forum, organized by the African Development Bank Group (AfDB), highlighted that Africa’s public debt has surged by 170% since 2010, reaching $1.15 trillion in 2023. Rising debt servicing costs, corruption, and inefficiencies in debt utilization were identified as critical factors exacerbating the crisis.

In Nigeria, debt servicing costs climbed to N3.57 trillion in the third quarter of 2024, accounting for 45% of the country’s revenue. This highlights the significant strain on public finances, leaving less room for infrastructure development and social investment.

Dr. Akinwumi Adesina, President of the AfDB, emphasized the need for African nations to strengthen domestic revenue mobilization, plug financial leakages, and better utilize natural resources to address their debt challenges. He also called for a reformed global financing framework to ensure fairer terms for developing nations.

Efforts are also underway to establish an African Credit Rating Agency to counter the perceived biases of international credit rating agencies. Additionally, the AfDB is supporting capacity development and providing technical assistance to African nations to enhance debt management practices.

Participants at the forum reached a consensus on prioritizing prudent borrowing, transparency, and fiscal discipline as essential steps to ensure sustainable debt management across the continent.

Previous post Domestic Investors Dominate as Equity Trading Hits N10.8tn
Next post BATN Foundation Empowers Akwa Ibom Poultry Farmers with Noiler Chickens

Leave a Reply

Your email address will not be published. Required fields are marked *