From Femi Mustapha, in Kaduna
Participants at a one-day National Debt Conference have emphasized that debt should remain a tool for development rather than a trap that perpetuates underdevelopment.
This message was conveyed in a communiqué issued after the conference, which was organized by the Africa Network for Environment and Economic Justice (ANEEJ) in collaboration with the African Forum and Network on Debt and Development (AFRODAD).
The communiqué stated that borrowing is not the core problem for African countries; rather, the issue lies in how the borrowed funds are utilized.
The participants observed that while previous and current governments continue to borrow for various projects, they often invest only a small fraction of these loans into initiatives that yield little return on investment or fail to benefit the population.
Additionally, the conference addressed the issue of illicit financial flows (IFFs), which remain one of the mechanisms through which imperialism and local collaborators—specifically the African ruling class—continue to undermine the continent’s wealth. As a result, significant sums of money are hidden in foreign safe havens by corrupt politicians and their business partners, exacerbating Africa’s economic problems.
The communiqué acknowledged the current administration’s consistent efforts to service Nigeria’s debts, including recent repayments of the IMF loan.
It also highlighted the need for a new paradigm that views debt relief not as an act of charity but as a matter of reparative justice.
There is a pressing need to mobilize domestic resources and reduce borrowing for services, with loans being directed toward capital projects that can generate their returns without jeopardizing the future of Nigerians.
Participants suggested promoting the ‘Nigeria First’ policy to encourage the patronage of made-in-Nigeria products as a strategy to sustainably reduce borrowing.
They resolved that African countries, including Nigeria, should avoid negotiating based on the debt-to-GDP ratio to prevent unnecessary and unsustainable borrowing. Any future borrowings should be specifically for capital projects rather than for services or less impactful initiatives that do not guarantee a return on investment.
Organized African civil society and social movements must continue to advocate for reparations and the acknowledgment of ecological debt at global forums, collaborating with honest and reputable civil society groups in the global north to apply pressure on their governments.
Furthermore, African civil society groups should strengthen their ties with the Caribbean Commission (CARICOM) and other international NGOs to strategize on promoting reparative justice for development.
Transparency and accountability must be prioritized in all negotiations for new loans to avoid compromising the future of the populace.
Civil society organizations (CSOs) are encouraged to challenge European nations that have returned or are still holding onto African artifacts. They should demand declarations and equitable sharing of museum proceeds for the duration these artifacts have been displayed and have generated income in foreign museums.
The necessity for a credible debt audit at all levels—local, state, and federal—was also highlighted.
CSOs should intensify calls for debt cancellation or repudiation as a response to the complex “who owes whom” question. Additionally, establishing an African Borrowers Club, similar to the Paris Club, would allow for better negotiation outcomes.
CSOs should reach out to regional bodies such as ECOWAS, the Arab League, SADC, the East African Economic Community, and the Maghreb region to amplify the call for reparative justice.
