Dr. Akinwumi Adesina, President of the African Development Bank (AfDB), has stated that the international community must assist Nigeria in reducing its debt load.
Adesina stated yesterday at the Nigeria International Economic Partnership Forum in New York that money is essential to addressing Nigeria’s economic issues.
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Given that Africa’s debt to GDP ratio has reached 70% and that numerous nations face a significant danger of debt distress due to unstable, unsustainable debt levels, he argued that financing was essential.
“Nigeria’s total debt level is N42.84 trillion or $103 billion. External debt levels stand at N16.61 trillion or $40 billion. Ladies and gentlemen, Nigeria needs help to tackle this debt burden.
“International partnerships on debt are helping Africa, and Nigeria. The issuance of special drawing rights (SDR) by the International Monetary Fund of $650 billion helped provide liquidity support for countries. However, Africa only received $33 billion out of all of that. Pretty small.
“A call made by the African heads of State for developed economies to rechannel $100 billion of additional SDRs to Africa will go a long way to reduce the debt burden in Nigeria.
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“Allocating this SDR, some of this, through the African Development Bank will actually allow us to leverage it four times because we are a leveraging machine. We can deliver more financing to Nigeria and Africa.
Therefore, I believe Nigeria and other African nations need debt relief. They are unable to run up the slope while toting a sandbag.
He claimed that in order to combat climate change, African nations—including Nigeria—need international cooperation.
Adesina asserted that the continent loses $15 billion as a result of climate change and that all it takes to comprehend this is to look at Lake Chad in Nigeria.
