…Says Nigeria Seeks Global Cooperation, Committed to Sustainable Development

By Gift Chapi-Odekina, Abuja

The Deputy Speaker of Nigeria’s House of Representatives, Hon. Benjamin Kalu, has announced a significant reduction in Nigeria’s debt servicing burden under President Bola Tinubu’s administration, lowering it from 96% of the 2023 revenue to 67%.

Kalu, representing Nigeria at the Inter-Parliamentary Union (IPU) and United Nations General Assembly (UNGA) 2025 Parliamentary Hearing in New York, described this achievement as a reflection of the country’s commitment to sustainable development and responsible debt management.

He highlighted that this reduction has created fiscal space for investments in critical sectors such as health, education, and infrastructure, which are essential for achieving the Sustainable Development Goals (SDGs).

During a presentation titled “The Debt Crisis and the SDGs: Proposals for Sustainable Solutions,” Kalu outlined the key measures driving the reduction, including:

Strengthening Parliamentary Oversight: The National Assembly is reviewing the Fiscal Responsibility Act to enforce debt ceilings and ensure transparency.

Financial Sector Reforms: Efforts to regulate the financial sector and promote innovative financing solutions.

SDG-Aligned Debt Management: Working on reforms to leverage philanthropy and impact investing for SDG-focused debt management.

He said: “To achieve this reduction, we have implemented several measures, including strengthening parliamentary oversight, regulating the financial sector, and promoting innovative financing solutions. Our goal is to maintain transparent, accountable, and sustainable debt management practices.”

Kalu also pointed out that biased credit rating methodologies by global agencies like S&P and Moody’s increase Nigeria’s borrowing costs, estimating a loss of $1.5 billion annually due to excess interest rates.

Kalu emphasized that Nigeria is pursuing global cooperation to address the debt crisis and sustainable development through initiatives such as:

SDG-Linked Debt Relief: Nigeria is advocating for SDG Conditional Debt Clauses through the International Monetary Fund (IMF) to allow for payment pauses during crises.

African Credit Rating Agency (ACRA): Partnering with the African Union to establish an African-led credit rating body for fairer assessments.

Opposing Vulture Fund Litigation: Calling on OECD nations to criminalize predatory lawsuits against low-income countries.

He stated: “We believe that global cooperation is essential to achieving our development goals and addressing the debt crisis. Collective action is the path to a more equitable and prosperous world.”

In another presentation titled “International Trade for the SDGs: The Challenge of Poverty Eradication Through Export-led Growth,” Kalu discussed Nigeria’s efforts to address challenges in export diversification and improve its trade environment:

AfCFTA Implementation: Despite ratifying the African Continental Free Trade Agreement (AfCFTA), Nigeria faces bureaucratic bottlenecks and infrastructure deficits that limit competitiveness.

Legislative Reforms: The House of Representatives has prioritized laws to diversify exports, streamline business registration, and maximize AfCFTA benefits through Agenda 4 of its 2023-2027 legislative agenda.

Digital Economy Collaboration: Working with META and AfriLabs to create legislative frameworks for digital trade, including exemptions from digital service taxes for Nigerian tech platforms.

He explained: “We are advancing legislative efforts to diversify exports, enhance trade efficiency, and ensure that Nigerian businesses thrive in the global digital economy while meeting domestic revenue targets.”

In a presentation on “Raising Domestic Resources for the SDGs: A Case for Tax Reforms,” Kalu highlighted Nigeria’s renewed focus on strengthening its tax system to drive sustainable development:

Tax Reform Bills: In 2024, President Bola Tinubu transmitted four key tax reform bills to the National Assembly, which have passed second reading and are under review by the Finance Committee.

Modernizing Tax Administration: The proposed laws aim to harmonize taxes, consolidate revenue agencies, and leverage technology for better compliance.

Sector-Specific Tax Breaks: The 2023 Finance Act introduced tax incentives for agro-processing and renewable energy exports, aligning with SDG 1 (poverty) and SDG 9 (industry).

Kalu asserted: “Nigeria’s proactive approach to tax reform—through centralized tax collection, advanced technology, and global cooperation—positions us to better mobilize domestic resources and support the SDGs.”

Kalu concluded by stating that Nigeria’s approach to debt management, tax reforms, and global advocacy provides a model for other IPU member countries:

“By strengthening oversight, modernizing tax laws, and championing fair credit ratings, Nigeria can transform its debt burden into a springboard for sustainable development. The IPU must amplify these strategies to avert a lost decade for the SDGs.”