COVID-19: NLC advocates debt relief, debt pardon for Nigeria
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Following the World Banks disclosure of plans to roll out $160 billion in emergency aid to countries impacted by the Corona virus including US$14 billion in debt repayments to governments owed by 76 poor countries, the Nigeria Labour Congress (NLC), has expressed displeasure for excluding Nigeria from the list of countries to benefit from the goodwill.
In a statement signed by the NLC President, Ayuba Wabba, the Congress appealed to the International bodies for the inclusion of Nigeria in the beneficiary list for the Covid-19 related debt relief, debt moratorium and debt pardon based on very cogent reasons.
While noting that Nigeria external debt as at December 2019, hit a 16 year high of US$27 billion with a debt servicing commitment of US$1.5 billion, he explained that Nigeria’s debt servicing is about 5% of the 2020 federal budget and 75% of the country’s external reserves signpost that Nigeria’s debt servicing pledges are impracticable and should be re-negotiated.
“We call for the inclusion of Nigeria in the beneficiary list for the Covid-19 related debt relief and debt moratorium based on very cogent reasons. Nigeria is facing a dire economic crisis given the recent plunge in the price of crude oil, Nigeria’s major foreign exchange earner. This has already led to the downsizing of the capital expenditure in the 2020 national budget. Second, in December 2019, Nigeria’s external debt hit a 16 year high of US$27 billion with a debt servicing commitment of US$1.5 billion.”
He went further to explain that with the population as large as Nigeria’s with very active citizens could be a major epicenter for future global waves of Covid-19 if very robust and adequate support is not extended to Nigeria to fight and contain the corona virus pandemic.
Speaking further, Wabba maintained that the dire signs are all over the place as experienced during the two weeks initial lockdown in Lagos State, Ogun State and the Federal Capital Territory (FCT), with reports of increased tension, unrests and criminal activities in different parts of the country.
“The fact is that the dangers of a burgeoning constituency of the poor including the working-class poor is staring us hard in the face. We do not know how long this dam can hold. But we do know that Nigeria needs all the support it can get, including debt relief, moratorium, and pardon in order to enable the country tide over the waves of Covid-19 pandemic.
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“The Nigeria Labour Congress completely aligns with the position of the International Trade Union Confederation (ITUC) and other international non-governmental organizations which warned that failure to address the debt and financing needs of developing countries could trigger large scale loss of lives and livelihoods. This could be the harbinger of the collapse of the global social and economic order.
“In order to mobilize the necessary financial resources to fight and defeat Covid-19, the Nigerian labour movement calls for a temporary suspension of debt payments by developing economies, re-negotiation of debt obligations, and ultimately debt pardon by creditor countries.
“We also believe that the current difficulties instruct our government to always keep a healthy debt profile that can withstand the evil day. While we learn our lessons, we must halt Covid-19, we must re-start our economy, we must pay for essential goods and services, we must recover jobs and income, we must save lives, and we must live again.” Said Wabba
