Vice President Kashim Shettima has said heavy debt servicing is limiting the ability of developing countries, including Nigeria, to invest adequately in education, healthcare and infrastructure.
Shettima spoke on Thursday while delivering President Bola Ahmed Tinubu’s statement at the 81st United Nations General Assembly in New York.
He identified inadequate financing as one of the major obstacles to sustainable development, saying many developing countries spend a significant part of their resources servicing debts instead of funding critical sectors.
“Many developing countries devote substantial resources to debt servicing at the expense of education, healthcare and infrastructure,” he said.
The Vice President called for reforms to the international financial system to make financing more accessible to developing countries and ensure that debt sustainability assessments take their development needs into account.
The statement also called for wider access to concessional financing and supported alternative funding models involving private capital, blended finance, South-South cooperation and strategic partnerships.
According to Shettima, such financing should help countries pursue sustainable development, adapt to climate change and build infrastructure that can withstand future challenges.
He said the international financial architecture should be reformed to provide developing countries with greater opportunities to finance their development priorities.
UNGA: Debt servicing holding back Nigeria’s development – Shettima