Highlighting the hindrance of non-transparent resource-backed loans on the economic development of Nigeria and other African nations, Akinwumi Adesina, the President of the African Development Bank, expressed his concerns.
Speaking at the Semafor Africa Summit during the International Monetary Fund and World Bank 2024 Spring Meetings, Adesina pointed out the issues caused by Africa’s increasing external debt, which stood at $824 billion in 2021. Countries are compelled to allocate a significant 65% of their GDP towards servicing these debts.
Emphasizing that African nations are facing challenges such as COVID-19 fiscal pressures, infrastructure demands, and escalating inflation, Adesina stressed the importance of addressing the structural problems in Africa’s debt situation.
Adesina stated, “It is essential that we ensure accountability and transparency in debt management to put an end to the complication caused by these obscure natural resource-backed loans in the debt resolution process.”