Kogi stakeholders demand urgent reform of global financial system

By Anan Geolengs

Residents and stakeholders in Kogi State on Tuesday called for urgent reform of the global financial system.

They said Africa’s sovereign debt burden was denying citizens access to health, education and other basic services.

The stakeholders made this call during “Freedom from Debt” campaign organised by the AIDS Healthcare Foundation, AHF Nigeria, at Sarkin Noma community in Lokoja.

The participants urged international creditors to automatically suspend debt repayments for developing countries affected by pandemics and natural disasters.

They also called on global lenders to reduce interest rates on loans to enable developing nations to invest more in healthcare, education, water supply and other critical infrastructure.

A community leader, Mr Nasiru Illiyasu, urged the government to implement the Borrowers’ Forum proposed at the Seville Financing for Development Summit and the G20 meeting in South Africa to strengthen collective bargaining.

The Youth Leader of the community, Mr Idris Yahaya, called for mandatory pauses on debt service during health and climate emergencies.

Also speaking, the Women Representative, Mrs Asimau Abdulmalik, proposed a 1 per cent AI Solidarity Levy on AI-related capital and profits to fund debt relief and social protection.

The Hakimi of Sarkin Noma, Alhaji Bala Musa, commended AHF for selecting the community to host the campaign.

The royal father expressed optimism that the campaign for debt freedom would improve the lives and well-being of rural communities across Africa.

Ambassador Idris Muraina described the initiative as a timely global call and a welcome development.

Muraina stressed the need for the World Bank and the International Monetary Fund, IMF, to ease the burden of loan repayment for developing countries so that funds could be redirected to education, health, welfare and other development priorities.

Also, the Vice Chairman of the Nigeria Union of Journalists, NUJ, Kogi State Council, Mr Ibrahim Obansa, commended AHF’s efforts and pledged the support of the media to ensure the campaign’s objectives were achieved through mass outreach.

However, some of the leaders emphasised that African leaders at all levels must be responsible, transparent and accountable in utilising available resources, especially after debt relief had been granted.

Earlier, AHF Nigeria’s Senior Advocacy and Marketing Manager, Mr Steve Aborisade, presented a policy brief titled “The Crushing Reality of Sovereign Debt.”

Aborisade said the system was “failing by design,” noting that low- and middle-income countries paid 2 to 4 times more interest than the US and up to 12 times more than Germany.

He added that 3.4 billion people lived in countries that spent more on debt payments than on health or education.

According to him, AHF and other stakeholders are advocating equitable terms in debt repayment and a fairer financial system to enable governments in developing nations to invest in the wellbeing of their people.

Aborisade stressed that no country should have to choose between protecting its people and paying into an unfair system, and urged leaders to treat the crisis with urgency.