Nigeria and other developing countries are preparing to negotiate their combined $11.7 trillion external debt burden and annual servicing costs of about $920 billion. The effort comes as many nations struggle to pay for basic services.
The group launched the Borrowers’ Platform on April 15 during the IMF-World Bank Spring Meetings in Washington, D.C. The United Nations Conference on Trade and Development will serve as its secretariat.
The platform aims to give borrowing nations a stronger collective voice when they talk to creditors. For decades, groups like the Paris Club have coordinated creditor positions, but borrower countries lacked a similar structure.
UN Secretary-General António Guterres called the initiative a “breakthrough in global financing.” He said it allows borrowing countries to sit together, learn from each other and speak with one voice.
A heavy burden
In 2024, the combined external debt of developing nations reached $11.7 trillion. Servicing costs climbed to roughly $920 billion. Fifty-four countries, home to 3.4 billion people, now spend more on debt repayments than on health or education.
Developing countries pay more than twice the interest rates faced by advanced economies. African nations pay three times the benchmark rates. Interest payments on government debt in developing countries have more than doubled since 2014.
Egypt is leading a working group to steer the platform’s implementation. Pakistan serves as vice-chair. Other members include Colombia, Honduras, Maldives, Nepal and Zambia.
Nigeria’s situation
Nigeria’s total public debt stood at N159.28 trillion as of December 2025, according to the Debt Management Office. Yearly debt servicing costs are about N15.5 trillion.
The IMF projects Nigeria’s debt-to-GDP ratio will decline to 32.3 percent in 2026 from 35.5 percent in 2025. The fund expects the ratio to rise slightly to 33.1 percent in 2027.
Global public debt rose to just under 94 percent of GDP in 2025. The IMF projects it will reach 100 percent by 2029, a level not seen since after World War II.
IMF officials said many African countries remain highly vulnerable to global shocks because of high debt levels and limited fiscal space. Oil exporters like Nigeria could benefit from higher oil prices, but the IMF advised them to use those gains to rebuild fiscal buffers and reduce interest burdens.
What the platform offers
The Borrowers’ Platform is voluntary and open to developing countries that are UN member states, net borrowers and not full members of creditor groups. Its proposed structure includes a Governing Council of finance ministers and central bank governors, plus a Steering Committee of senior technical officials.
The platform will help members share knowledge about debt restructuring. It aims to give them tools to engage with creditors on more equal terms. Organizers hope it will send a clear signal to financial markets, potentially lowering borrowing costs.
A working group will establish interim leadership and adopt a work program running through October 2026.
The initiative comes as the Middle East conflict creates new economic pressures. UN analysis suggests the crisis could push more than 30 million people into poverty worldwide.