Nigeria Urges Urgent Debt Relief and New Sovereign Debt Mechanism at UNGA80

Nigeria Advocates for Global Financial Reform at UNGA80

New York, USA – Nigeria has made a compelling case for urgent global financial reforms, including significant sovereign debt relief and the creation of a new, binding mechanism to manage sovereign debt. The call was delivered by Vice-President Kashim Shettima, who represented President Bola Tinubu at the 80th United Nations General Assembly (UNGA80) in New York. The high-level General Debate of UNGA80 commenced on September 23, 2025, and is set to conclude on September 28, 2025.

During his address, Vice-President Shettima underscored that debt relief should be viewed as 'a clear path to peace and prosperity' rather than 'an act of charity'. He argued that such measures are essential to enable emerging economies to 'escape the economic straitjacket of primary production of unprocessed exports' and transition towards more diversified and sustainable growth models. Nigeria's stance highlights a broader concern among developing nations regarding the current global financial architecture and its impact on their economic stability and development prospects.

A Proposed 'International Court of Justice for Money'

A central tenet of Nigeria's proposal is the establishment of a novel, binding international mechanism designed to manage sovereign debt. Vice-President Shettima vividly described this proposed framework as 'a sort of International Court of Justice for money'. The objective of such a mechanism would be to provide a structured and equitable approach to resolving debt crises, thereby preventing economic stagnation in developing countries. This initiative aims to foster a more inclusive international economic order that empowers nations to move beyond reliance on raw material exports.

The Vice-President also referenced the decades-old Lagos Action Plan, a blueprint for African self-reliance, advocating for a renewed focus on local value addition across sectors such as agriculture, solid minerals, and petrochemicals. This approach, he suggested, would bolster economic resilience and reduce vulnerability to external shocks.

Broader Agenda for a More Equitable World Order

Beyond the critical issue of debt relief, Vice-President Shettima's statement at UNGA80 encompassed a wider range of reforms Nigeria deems necessary for a more equitable global system. These include:

• A demand for a permanent seat for Nigeria on the UN Security Council, emphasizing that the United Nations must 'reflect the world as it is, not as it was'.
• Advocacy for resource-rich nations to benefit fairly from their strategic minerals through increased investment, local processing, and job creation.
• A call to close the global digital divide, with Shettima asserting that 'AI must stand for Africa Included'.

These points collectively articulate Nigeria's vision for a reformed multilateral system that is more representative, responsive, and conducive to the sustainable development of all nations.

Nigeria's Debt Landscape and Global Context

The call for debt relief comes amidst significant domestic debt challenges for Nigeria. As of March 31, 2025, Nigeria's total public debt stood at N149.39 trillion, with projections indicating it could reach N187.79 trillion by the end of 2025. The country's debt service to revenue ratio was approximately 59.9% in 2024, highlighting the substantial portion of revenue allocated to debt repayment. While Nigeria's debt-to-GDP ratio is around 40.3% (rebased GDP), concerns persist regarding fiscal sustainability and the need for economic diversification.

Globally, public debt is projected to exceed USD 100 trillion in 2025, with developing countries accounting for a significant 30% of this total. There is a growing international recognition that the existing mechanisms for addressing sovereign debt problems are inadequate, making Nigeria's proposals particularly pertinent in the current global economic climate.