Shettima: Debt Servicing Is Limiting Nigeria’s Investment in Education, Healthcare

Nigeria’s growing need to fund education, healthcare and infrastructure has brought renewed attention to the burden of debt repayments, with Vice President Kashim Shettima calling for changes to the international financial system to give developing countries more room to invest in their economies.

Shettima made the remarks in New York while delivering President Bola Ahmed Tinubu’s statement at the 81st United Nations General Assembly (UNGA), where he highlighted the financial constraints facing developing nations.

According to the Vice President, a substantial share of public resources in many developing countries goes towards servicing debt, leaving governments with fewer funds to address essential development needs.

His remarks placed debt sustainability and access to affordable financing at the centre of discussions about how countries such as Nigeria can achieve long-term economic and social progress.

Debt Repayments and the Pressure on Public Services

Shettima identified inadequate financing as a major obstacle to sustainable development, noting that debt obligations can limit the resources available for critical sectors such as education, healthcare and infrastructure.

For Nigeria, the issue is particularly relevant because government spending must accommodate debt obligations alongside investments in public services, economic development and essential infrastructure.

When a significant portion of government revenue is committed to debt servicing, the amount available for other priorities can become more constrained. This creates difficult choices about how public funds are allocated and how development projects are financed.

The Vice President’s statement highlighted the need to address these financing pressures through broader reforms rather than treating development funding as a purely domestic challenge.

Shettima Calls for Changes to Global Financial Rules

A central part of Shettima’s message was the need to reform the international financial architecture to make funding more accessible to developing economies.

He argued that debt sustainability assessments should take countries’ development needs into account, rather than focusing narrowly on their ability to meet repayment obligations.

The statement also called for wider access to concessional financing, which generally offers more favourable borrowing terms than loans available through commercial markets.

Such financing can provide governments with additional room to pursue development projects while managing the cost of borrowing.

The call reflects a broader concern among developing economies that the terms and availability of international financing can affect their ability to achieve long-term development goals.

Alternative Financing Models for Development

Beyond concessional loans, Shettima’s statement proposed several funding approaches that could help developing countries finance their priorities.

These include:

• Private capital: Mobilising investment from private-sector institutions to support development projects.
• Blended finance: Combining public and private funding to attract investment in projects with development benefits.
• South-South cooperation: Expanding economic and development partnerships among countries in the Global South.
• Strategic partnerships: Building collaborations that can provide funding, expertise and infrastructure support.

The statement also linked development financing to climate change adaptation and the construction of infrastructure capable of withstanding future challenges.

Why the UNGA Statement Matters for Nigeria

The message highlights a key economic question for Nigeria: how to meet debt obligations while maintaining investment in public services and long-term development.

Access to affordable financing could give the government more flexibility to fund infrastructure, education and healthcare. However, the impact would depend on the terms of the financing, how funds are used and the country’s ability to manage its debt.

The Debt Management Office (DMO) publishes information on federal government debt servicing, which can help readers track the financial obligations discussed in the statement.

Debt Management Office Nigeria

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Shettima’s remarks also place Nigeria’s financing concerns within a wider international discussion about the conditions under which developing economies borrow and fund their development plans.

What Happens Next?

The statement sets out Nigeria’s position on international development financing, but it does not announce a specific debt-relief agreement, new funding package or change to the country’s existing repayment obligations.

The next steps to watch include:

1. Whether international financial institutions introduce changes that improve access to affordable development financing.
2. Whether Nigeria secures additional concessional funding or expands partnerships involving private capital.
3. How the Federal Government balances debt servicing with spending on education, healthcare and infrastructure.
4. Whether future financing arrangements include measurable development outcomes and safeguards for debt sustainability.

For now, Shettima’s message at the United Nations centres on the need to make development financing more accessible while allowing countries to meet their economic and social priorities.