Developing economies, including Nigeria, have moved to confront mounting debt pressures totalling $11.7 trillion, with yearly servicing costs nearing $920 billion, by launching a coordinated global platform aimed at strengthening their negotiating power and debt management capacity.

The initiative, unveiled during the IMF–World Bank Spring Meetings, establishes the first-ever Borrowers’ Platform, with United Nations Conference on Trade and Development (UNCTAD) serving as its secretariat.

UNCTAD, in a release yesterday said the platform brings together finance ministers and central bank governors from across the developing world to improve coordination, share expertise and present a unified position in global debt discussions.

In Nigeria, total debt stands at N159.28 trillion as of December 2025, according to the Debt Management Office (DMO). Debt servicing alone stands at about N15.5 trillion yearly.

According to UNCTAD, external debt across developing countries reached $11.7 trillion in 2024, while servicing obligations climbed to about $920 billion. In 54 countries, representing roughly 3.4 billion people, governments now spend more on debt repayments than on critical sectors such as health and education, underscoring the depth of the crisis.

In Nigeria, the 2026 health budget is N2.15 trillion while education allocation is N3.5 trillion.

UN Secretary-General António Guterres described the platform as a “breakthrough in global financing”, noting that it offers borrowing nations an opportunity to collectively shape discussions that have historically been dominated by creditors.

While creditor groups such as the Paris Club have well-established coordination mechanisms, borrowing countries have lacked a comparable structure to exchange information, build technical capacity and align strategies. The new framework is expected to fill that gap through peer learning, policy coordination and improved transparency.

The release said the initiative also carries political weight as representatives from 30 countries participated in the launch, including major economies such as India and South Africa, alongside smaller and more vulnerable states like Maldives. A working group led by Egypt, with Pakistan as vice-chair, will steer implementation.

In Nigeria and its peers, the platform comes at a critical time as rising debt servicing costs have constrained fiscal space, limiting investment in infrastructure, social services and economic resilience.

By improving debt management practices and strengthening collective bargaining, participating countries hope to secure more sustainable financing terms.