UNGA: Debt Servicing Holding Back Nigeria’s Development — Shettima

Vice President Kashim Shettima has said heavy debt servicing is limiting the ability of Nigeria and other developing countries to finance critical development priorities.

Shettima made the remarks while delivering Nigeria’s statement on behalf of President Bola Tinubu at the 81st United Nations General Assembly in New York.

The Vice President said many developing countries were allocating substantial resources to servicing debt at the expense of sectors such as education, healthcare and infrastructure.

He said the situation underscored the need for reforms to the international financial architecture and greater access to concessional financing for developing economies.

Nigeria also called for debt sustainability frameworks that take the developmental needs of countries into account when assessing their capacity to borrow and repay.

Shettima said international financing should provide developing countries with sufficient room to pursue economic growth and meet their development objectives without being overwhelmed by debt obligations.

He also called for innovative financing mechanisms involving private capital, blended finance, South-South cooperation and strategic partnerships to support sustainable development, climate adaptation and resilient infrastructure.

The Vice President linked the financing challenge to broader efforts to address climate change, saying developing countries require predictable and accessible funding to pursue climate action without compromising their development priorities.

Nigeria has maintained that developing countries should receive greater support to expand energy access, build infrastructure, create jobs and reduce poverty while transitioning towards cleaner sources of energy.

Shettima also highlighted the potential of the African Continental Free Trade Area to strengthen regional economies and create additional opportunities for investment and industrial development.

He said deeper intra-African trade, stronger regional value chains and increased manufacturing could help African countries move beyond dependence on the export of raw materials.

The Vice President said Africa’s natural resources should increasingly support value addition, manufacturing, technological innovation and knowledge-driven growth.

The call for changes to global financing arrangements comes amid wider concerns over rising debt pressures in developing economies. The United Nations has reported that developing countries continue to face high interest costs, limited access to affordable external financing and significant pressure on public resources.

Shettima said stronger international partnerships were therefore necessary to create financing conditions that support development rather than constrain it.

Nigeria’s position at the UNGA forms part of its broader call for reforms to global institutions and greater consideration for the economic realities and development needs of developing countries.