By Joy Baba-Yesufu
Stakeholders from government institutions, civil society organisations, development partners and financial experts have called for urgent reforms of the global financial system and stronger African cooperation to address the continent’s growing debt burden.
The call was made at the National Dialogue on Debt and Development held in Abuja under the theme, “From Fragmentation to Influence: Advancing the Common African Position on Debt.”
Speaking at the event, Acting Executive Director of the African Forum and Network on Debt and Development (AFRODAD), Dr. Theophilus Jong, described Africa’s debt challenge as a systemic issue rooted in what he called an unfair global financial architecture that continues to disadvantage developing nations.
Dr Jong, who was represented by the policy, research and advocacy officer of AFRODAD, Diana Mochoge said African countries owed approximately $685.5 billion to external creditors as of 2023 and are projected to spend about $88.7 billion on debt servicing in 2025 alone.
“Debt is not merely an economic issue; it is a human rights issue. The current global financial architecture was designed decades ago without African participation and continues to constrain the continent’s development aspirations,” Jong said.
He argued that African countries face disproportionately high borrowing costs, unfair credit ratings and restrictive lending conditions, which collectively limit their fiscal space and development prospects.
Jong, however, stressed that African governments must also take responsibility for addressing corruption, financial mismanagement and weak accountability systems that contribute to rising debt levels.
He welcomed the outcomes of the inaugural African Union Debt Conference held in Lomé, Togo, in May 2025, where African leaders adopted a framework for debt reform and sustainable financing.
The recommendations include debt forgiveness initiatives, reforms to the G20 Common Framework, the establishment of an African Credit Rating Agency, stronger domestic resource mobilisation measures, improved debt transparency and the creation of an African Debt Monitoring Mechanism.
Also speaking, Deputy Executive Director of the Africa Network for Environment and Economic Justice (ANEEJ), Mr. Leo Atakpu, said Nigeria’s rising debt profile reflects broader challenges confronting many African economies.
He noted that while borrowing remains a legitimate tool for financing development, concerns persist over debt sustainability, transparency, accountability and the developmental impact of borrowed funds.
“Debt servicing continues to consume a significant proportion of government revenue, raising critical questions about sustainability and the long-term implications for future generations,” he said.
Atakpu emphasized the need for stronger parliamentary oversight, public participation and transparency in loan negotiations and debt management processes.
He urged African governments to adopt the African Borrowing Charter, a framework that promotes responsible borrowing, accountability and the productive utilisation of debt for sustainable development.
Participants at the dialogue stressed that debt sustainability cannot be achieved through borrowing policies alone. They identified illicit financial flows, corruption, tax abuses, weak public financial management systems and overreliance on external financing as major factors worsening Africa’s debt crisis.
The stakeholders also called for increased domestic resource mobilisation, prudent fiscal management, investment in productive sectors and reforms of international financial institutions to ensure fairer treatment of African economies.
They further urged African countries to negotiate collectively with international lenders, including the World Bank and the International Monetary Fund, arguing that a united continental position would strengthen Africa’s bargaining power and influence global financial governance.
The dialogue forms part of preparations for the Sixth African Conference on Debt and Development (AfCoDD VI), scheduled to hold in Nairobi, Kenya, later this year, where African leaders and stakeholders are expected to advance a unified position on debt governance and sustainable development financing.
Participants expressed optimism that the Common African Position on Debt would provide a pathway toward financial sovereignty, economic resilience and sustainable development across the continent.
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