Debt Forgiveness is Not the Solution: A Critical Response to President Tinubu’s Call at UNGA
By Matthew Eloyi
President Bola Tinubu’s recent call for debt forgiveness at the 79th United Nations General Assembly (UNGA) may resonate with developing nations like Nigeria, but it raises deeper questions about sustainable economic management and the country’s future.
Represented by Vice President Kashim Shettima, President Tinubu urged world leaders and multilateral institutions to prioritise debt forgiveness for Nigeria and other countries of the Global South. While the request for debt relief might seem like a viable solution on the surface, it risks deflecting from the real, systemic issues hindering Nigeria’s development.
At the heart of Tinubu’s speech was a plea for debt forgiveness to ease the burdens of developing nations and allow for a focus on developmental projects. However, there is an inherent contradiction in relying on debt relief without addressing the very conditions that created this debt dependency. What is often left out of such calls is the conversation about financial mismanagement, poor governance, and a lack of strategic planning that often lead to these unsustainable debt levels.
Nigeria’s Mismanagement of Resources
Nigeria is a country blessed with vast resources—oil, natural gas, minerals, and a growing population that should form the backbone of its economy. Yet, despite these abundant resources, the country finds itself repeatedly seeking financial relief from external creditors. The question arises: why is Nigeria perpetually in need of debt forgiveness when its potential for self-sufficiency is undeniable? Mismanagement of resources, corruption, and inefficient leadership over decades have created a cycle where the country borrows excessively but fails to translate these loans into sustainable growth.
Instead of calling for debt forgiveness, the Nigerian government must introspect and address the corruption and inefficiency that continue to plague its financial system. If the funds borrowed in the past had been effectively channelled into infrastructure, healthcare, education, and industrial development, the country wouldn’t be in its current predicament. Debt relief, without accountability, only emboldens further irresponsible borrowing.
Forgiveness Without Accountability?
One of the biggest risks associated with debt forgiveness is the lack of accountability that often follows. If Nigeria’s debt is forgiven today, what guarantees are there that future administrations won’t repeat the same mistakes? Without stringent conditions attached to any form of relief, the cycle of borrowing and financial mismanagement is likely to continue. The President’s call for debt relief glosses over these crucial questions of accountability and long-term financial planning.
Moreover, debt forgiveness creates a moral hazard, sending a signal to current and future governments that they can borrow recklessly with little consequence. Nigeria’s leadership must recognise that the international community is not an infinite source of financial bailouts. Instead of prioritising debt forgiveness, the government should focus on debt restructuring and, more importantly, creating policies that ensure self-sustaining development.
A Call for Genuine Economic Reforms
Rather than advocating for blanket debt forgiveness, President Tinubu and his administration should focus on implementing structural economic reforms. Nigeria’s economy is still overly reliant on oil, and the global shift towards renewable energy poses significant risks to its long-term viability. Diversifying the economy—through agriculture, technology, and manufacturing—should be the primary focus. By creating an environment that fosters innovation and reduces dependency on oil, Nigeria can generate revenue domestically and lessen its reliance on foreign loans.
Additionally, reforms in public finance are critical. For far too long, Nigeria has witnessed mismanagement in public spending, leading to bloated budgets and poor returns on investments. Transparent governance, proper auditing of public accounts, and strong anti-corruption measures will not only improve Nigeria’s creditworthiness but also reduce the need for continuous borrowing.
Multilateralism is Key—But So is National Responsibility
While President Tinubu rightly highlighted the importance of multilateralism, inclusivity, and cooperation on the global stage, these principles must also be applied domestically. Nigeria must ensure that its internal governance is inclusive, transparent, and cooperative. This includes fostering a culture where citizens can hold their leaders accountable for financial mismanagement. A government that is transparent with its people will inspire confidence and help to stabilise the economy from within.
Moreover, Tinubu’s critique of singularity and nationalism, which he claims are undermining collective global action, must be examined in Nigeria’s local context. The country is still grappling with severe divisions along ethnic, religious, and regional lines. The government must not only focus on global cooperation but also foster national unity to ensure that all citizens are working towards a shared vision of development.
Conclusion
Debt forgiveness is not a sustainable solution to Nigeria’s economic challenges. Instead of calling on the international community to repeatedly bail Nigeria out, the government should prioritise long-term reforms that will prevent the country from falling into the same debt traps. While President Tinubu’s speech at the United Nations General Assembly touched on important themes like multilateralism and global cooperation, his administration must also be willing to confront the deeper, more uncomfortable truths about Nigeria’s internal financial management.
The international community may be sympathetic to Nigeria’s struggles, but sympathy does not replace responsibility. To build a truly sustainable future, Nigeria must take ownership of its economic destiny, reject the temptation of easy solutions like debt forgiveness, and focus on creating a robust, diversified economy that can stand on its own.