UNGA: Debt servicing holding back Nigeria’s development – Shettima

Vice President Kashim Shettima has highlighted that heavy debt servicing is hindering Nigeria's ability to invest in crucial areas such as education, healthcare, and infrastructure. Delivered on Thursday during President Bola Ahmed Tinubu's statement at the 81st United Nations General Assembly in New York, Shettima identified inadequate financing as a significant barrier to sustainable development.

He noted that many developing nations allocate a large portion of their resources towards debt servicing, thereby limiting their capacity to fund essential sectors. "A significant portion of resources in many developing countries is spent on debt servicing, detracting from investments in critical areas like education, healthcare, and infrastructure," Shettima emphasized.

He urged for reforms in the international financial system to enhance accessibility to financing for developing countries and ensure that debt sustainability assessments consider their unique needs. The statement advocated for increased access to concessional financing and supported alternative funding models, including private capital, blended finance, South-South cooperation, and strategic partnerships.

Shettima stressed that such financing should facilitate sustainable development, climate change adaptation, and the construction of resilient infrastructure capable of withstanding future challenges. He emphasized the need for the international financial architecture to be reformed to provide developing countries with more opportunities to fund their development priorities.