Business

Debt crisis: Developing countries’ external debt hits $11.4trn

When governments must prioritize debt repayments over public services and investments, people pay the price. Schools are underfunded, hospitals lack supplies, and infrastructure crumbles.

Published

1 year ago

March 20, 2025

OCHEFA

537 Views

UN trade and development reports that developing countries are sinking deeper into a debt-driven development crisis.

In the report, the organization said that the developing nations’ external debt – money owed to foreign creditors – has quadrupled in two decades to a record $11.4 trillion in 2023, equivalent to 99% of their export earnings.

It said:” A mix of factors has fuelled this surge, including increased borrowing for development projects, volatile commodity prices, and widening public deficits.

The COVID-19 pandemic worsened the situation, as countries borrowed heavily to offset the economic fallout and fund public health measures.

While debt can be a vital tool for economic growth and development, it becomes a problem when repayment costs outpace a country’s capacity to pay.

That is now the case for two-thirds of developing countries.

Debt distress now looms over more than half of the 68 low-income countries eligible for the International Monetary Fund’s Poverty Reduction and Growth Trust – more than double the number in 2015.

High interest rates are worsening the burden. In 2023, developing nations paid $847 billion in net interest, a 26% increase from 2021.

They borrowed internationally at rates two to four times higher than the United States and six to 12 times higher than Germany. Defaulting on development:

The real cost of debt

When governments must prioritize debt repayments over public services and investments, people pay the price. Schools are underfunded, hospitals lack supplies, and infrastructure crumbles.

Yet, because existing debt workout mechanisms are inefficient and costly, most governments avoid default at all costs – even if it means sacrificing development goals and climate action.

As a result, countries may not default on their debt, but they default on their development.”

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Business

12-years after, US clears Nigerian vessels to land at its ports

Oyetola said that removal of the restriction by the USCG followed years of effort by Nigeria to meet international maritime security standards, particularly through the Nigerian Maritime Administration and Safety Agency (NIMASA).

Published

1 day ago

August 20, 2026

OCHEFA

18 Views

The Minister of Marine and Blue Economy, Adegboyega Oyetola, announced that the United States Coast Guard (USCG) has removed the Condition of Entry (CoE) imposed on Nigerian vessels from docking at its ports.

The CoE was first imposed in June 2014. Under the restriction, any vessel that had docked at designated Nigerian ports within its previous five port calls was required to meet additional security and documentation requirements before entering US waters.

The removal means those extra requirements no longer apply.Four USCG assessments between 2024 and 2026

He pointed to the country’s compliance with the International Ship and Port Facility Security (ISPS) Code as central to the case presented to US authorities.

The USCG carried out four separate assessments of Nigeria’s ports and maritime security framework between March 2024 and April 2026.

The inspections took place in March 2024, April 2024, March 2025 and April 2026. The government said each review recorded measurable progress.

Business

Naira Exchange Rates Thursday,20 August

Published

1 day ago

August 20, 2026

OCHEFA

22 Views

BLACK MARKET RATES

US Dollar (USD) Buy ₦1,404 Sell ₦1,410

Great British Pound (GBP) Buy ₦1,880 Sell: ₦1,900

EURO (EUR) Buy ₦1,585 Sell ₦1,605

Canadian Dollar (CAD) Buy ₦1,020 Sell ₦1,080

South African Rand (ZAR) Buy ₦75 Sell ₦90

Ghana Cedi (GHS) Buy ₦95 Sell ₦110

West African CFA Buy ₦2, 300 Sell ₦2, 400

CENTRAL AFRICAN CFA Buy ₦2,150 Sell 2,250

CBN Exchange Rates

US Dollar (USD) ₦1,350.41

Great British Pound (GBP) ₦1,839.13

EURO (EUR) ₦1,574.31

Swiss Franc (CHF) ₦1,681.92

Chinese Yuan (CNY) ₦200.61

West African CFA (XOF) ₦2. 37

West African Unit Account (WAUA) ₦1,836.21

Saudi Riyal (SAR) ₦359.65 South African Rand (ZAR) ₦83.71

Business

Oyede Tasks States To Look Beyond Federal Allocations For Economic Growth

Nigeria must move from an allocation dependent economy to one driven by production, investment and job creation,

Published

1 day ago

August 20, 2026

OCHEFA

24 Views

The Minister of Finance and Coordinating Minister of the Economy, Prof. Taiwo Oyedele, has said federal allocations alone cannot guarantee prosperity for states, urging them to develop sustainable sources of revenue and drive economic growth.

The Minister gave the advice during the 2026 National Council on Finance and Economic Development (NACOFED) conference in Owerri, Imo State, yesterday.

Oyedele emphasised the need for states to look beyond federal allocations and develop their productive capacities to achieve sustainable economic development.

He called for stronger fiscal federalism, improved revenue generation and economic diversification to strengthen Nigeria’s resilience to economic shocks.

“Nigeria must move from an allocation dependent economy to one driven by production, investment and job creation,” he stated.

According to him, recent economic reforms , including the removal of fuel subsidy and the unification of the foreign exchange market, have increased tremendously the revenue available for distribution through the federation account.

He said monthly federation account allocation, which was between N300 billion and N600 billion before 2023, is now above N2 trillion.