G-20 News

Buhari calls on G20 to cancel Nigeria’s debt after new request for € 4 billion, € 710 million loan

President Muhammadu Buhari urged the G20 to expand debt suspension initiatives in Nigeria and other developing / least developed countries.

Buhari made the appeal on Friday when addressing world leaders at the 76th session of the United Nations General Assembly (UNGA) in New York.

The members of the G20 are Argentina, Australia, Brazil, Canada, China, European Union, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia.

Others include Saudi Arabia, South Africa, South Korea, Turkey, United Kingdom, and United States. Spain is a permanent guest.

Buhari called for outright debt cancellation for countries facing the most serious challenges caused by COVID-19.

The Nigerian leader recalled that developing countries faced an unsustainable debt burden even before the coronavirus epidemic.

Buhari observed that the pandemic has increased the risk of debt escalation, where public resources are allocated to service and repayments at the expense of financing critical needs.

The president praised the momentum of international financial institutions and the G20 aimed at easing the economic situation of indebted countries.

“There is an urgent need to consider the expansion and extension of the Debt Service Suspension Initiative to include all developing countries, least developed countries and small island developing States facing fiscal challenges. and liquidity, ”he said.

The Buhari administration is under fire for asking the Nigerian Senate to approve a new credit of 4.054 billion dollars and 710 million euros.

In its conviction, the People’s Democratic Party (PDP) accused the All Progressives Congress (APC) government of trying to sell the country.

The opposition warned that approval of the latest application, plus an additional 5.6 trillion naira loan proposed for the 2022 budget would bring Nigeria’s liability to 40 trillion naira.

The Presidency provided a breakdown and insisted that borrowing is necessary to finance development projects and programs.