By Milcah Tanimu

The African Network for Environment and Economic Justice (ANEEJ), a civil society organization, has expressed concern that Nigeria’s escalating debt profile could lead to multidimensional poverty for its citizens. During a two-day International Hybrid Conference on Special Drawing Rights in Abuja, the Executive Director of ANEEJ, David Ugolor, highlighted the potential consequences of the country’s increasing indebtedness.

Ugolor, represented by the Deputy Director of ANEEJ, Leo Atakpu, noted that a significant portion of Nigeria’s revenue is used to service its debt, impacting both Nigeria and some West African countries. According to the Debt Management Office (DMO), Nigeria’s public debt stood at N87.38 trillion as of June 30, 2023.

The CSO expressed concern about the diversion of revenues to debt servicing, limiting funds available for essential social services, climate initiatives, and overall development. The debt crisis, according to Ugolor, poses a threat to achieving the Sustainable Development Goals and fulfilling the Paris Climate Agreement in West Africa.

He emphasized that urgent action is needed from governments and the international community to address the situation. The conference aimed to explore the use of Special Drawing Rights (SDRs) in Nigeria and Ghana and delve into debates surrounding SDR reallocation to countries in need without exacerbating the debt crisis.

A report by the Nigerian Economic Summit Group and the Open Society Initiative for West Africa highlighted other West African countries grappling with substantial debt profiles, including Benin Republic, Burkina Faso, Cabo Verde, the Gambia, Ghana, Guinea Bissau, Liberia, Niger, Senegal, and Togo.