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ActionAid’s Country Directors across Africa have expressed concern that as Nigeria and other African nations grapple with economic challenges, international financial systems must be restructured to ensure fairness, sustainability, and climate justice.
They were reacting to the African Union, which declared 2025 to be the Year of Reparations and the year is framed around justice for Africans and peoples of African descent through reparations.
Nigeria’s mounting debt, which currently stands at nearly $50 billion, has reignited discussions on global financial fairness, climate justice, and the impact of international lending rates on developing economies.
Speaking on the issue, ActionAid’s country directors across Africa welcome the African Union declaration of 2025 as the Year of Reparations and the economic analyst and advocate argued that Nigeria and other low-income countries face an unfair financial burden, especially as a significant portion of their loans are used for recurrent and capital expenditures.
Also, the Country Director of ActionAid Nigeria, Andrew Mamedu, at the weekend, said they point to historical inequalities, such as colonialism and the legacy of slavery, which allowed developed nations like the United States to build their economies on the labor of enslaved people.
He said in addition to historical injustices, climate change has become a focal point of the debt debate.
He highlighted that high-income countries, particularly those in the global north, contribute over 97% of global emissions. Under climate compensation agreements, wealthier nations are expected to compensate developing countries most affected by environmental degradation.
“Based on emission data, the U.S. alone is estimated to owe around $80 trillion in climate debt, with projections suggesting Nigeria should receive approximately $9.9 trillion in compensation by 2050.
“This raises a fundamental question—who truly owes who?” said one advocate.
“While Nigeria is struggling with a $50 billion debt, the developed nations responsible for climate damage owe us trillions in reparations. It’s time to renegotiate these financial arrangements.
“Critics also highlight disparities in lending rates. While countries like Germany pay interest rates as low as 0.8%, Nigeria is charged between 2% and 3% on similar loans. These high rates reduce available funds for critical social sectors, including education, healthcare, agriculture, and housing.
“We call for action include debt cancellation, fairer loan terms, and accountability for climate debts owed by high-emission countries.
“Advocates stress that climate justice must be a priority, with funds redirected to support the nations most affected by environmental changes.
“The discussion also touched on former U.S. President Donald Trump’s withdrawal from climate agreements, which some see as a move that undermines global climate commitments.
“While the U.S. contributes nearly 40% of global aid, experts argue that aid alone is not enough—wealthier nations must also take responsibility for their emissions and their impact on developing economies,” he said.
English (US) ·