$31 Trillion Debt: A Crisis for Developing Nations and Nigeria

At the recent United Nations Conference on Trade and Development (UNCTAD) session in Geneva, Secretary-General Rebeca Grynspan delivered a warning that developing countries face “impossible choices” between servicing debt and pursuing development, the figure of US$31 trillion in public debt burden for emerging economies.

For Nigeria, the implications are profound. Although the figure is global, the themes resonate with high debt servicing, volatile financing, and limited policy space for growth. Previous data show that several developing countries now spend more on interest payments than on health or education.

The UNCTAD report flags declining investment flows, elevated freight/transport costs (especially for land-locked and island states), and digital exclusion (2.6 billion people remain offline). These factors further hamper growth potential in countries like Nigeria.

What should Nigeria do? Key policy levers include debt restructuring dialogues, selective borrowing, focusing on high-impact infrastructure, and leveraging digital/clean-energy investment to break the debt-growth trap.

As global headwinds converge, rising interest rates, slowing growth, competing demands on public finances, Nigeria’s borrowing choices will matter more than ever.