The Economic Cost of Debt Forgiveness on Nigeria

All of these have occurred against the backdrop of a very interesting yet inclement global economic climate, harrowed by rising inflation and interest rate volatility, the aftermath of the COVID-19 pandemic and multiple political and economic upheavals, all of which have led to economic shocks from which no country has been spared. For lower and middle-income economies in Africa, surviving these (especially the pandemic) meant increasing external debt in order to support flailing social security systems, which in the first place were stunted partially due to high debt service payments. As a result, the World Bank identified excessive sovereign debt as a major impediment to development in Africa. This has led to some talk and action about debt relief and the overall reform of the global debt architecture.