UN Faces Liquidity Crisis as Nigeria, USA, and Other Major Contributors Default on Payments

• The United Nations is set to trim down its workforce to reflect current financial realities as member states fail to meet their obligations
• This layoff will affect staff in two key departments, and others at the headquarters also face a possible layoff or relocation
• Nigeria is among the companies that defaulted on payment obligations, and the UN records show what each country owes

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.

The United Nations is facing a severe liquidity crisis and may not be able to keep up with its diplomatic operations globally.

UN Secretary-General António Guterres has warned that the current financial situation may affect its ability to carry out peacekeeping, humanitarian, and diplomatic operations across the world.

While briefing member states in New York, Guterres stated that he situation has necessitated cost-cutting measures and engaging in wide-ranging structural reforms.

It was recently reported that the UN is undergoing some dire financial strain amid growing global challenges.

Guterres, while briefing member states in New York about the state of the multilateral body, stated that the arrears from member states were responsible for the liquidity crisis.

He said:

“The liquidity crisis is caused by one simple fact – the arrears.”

He noted that while the cost-cutting might not address the crisis, it would limit the impact momentarily and urged member states to pay what they owe.

Nigeria, other states defaulting in payment

According to the UN Controller's report to the General Assembly’s Fifth Committee (Administrative and Budgetary), only $1.8bn had been received against the $3.5bn regular budget assessments for 2025.

As of 30 April 2025, several countries have unremitted sums amounting to $2.4 billion.

• The United States of America has yet to remit $1.5 billion.
• China owes $597 million
• Russia owes $72 million
• Saudi Arabia owes $42 million
• Mexico owes $38 million
• Venezuela has about $38 million unremitted

Other member states have unremitted sums totaling $137 million, with $2.7 billion in unpaid peacekeeping funds.

For the international tribunal, there is an outstanding contribution of $79 million.

UN calls out Nigeria for defaulting on payments

According to the PUNCH, Nigeria is among the defaulters, with only 36% of contributions paid to the UN’s budget made over the last five years.

As compared to an expected contribution of $30.53 million, Nigeria has only remitted $10.96 million, leaving $19.57 million unremitted, according to data from the UN.

For 2025, 108 countries have paid their contributions in full, but Nigeria is not one of them. Its contribution of $5.1 million based on the 2025 regular budget assessment is still outstanding.

While Nigeria fully settled its dues in 2022 and 2024, it failed to appear on the UN’s annual Honour Roll for 2020, 2021, and 2023.

Due to the arrears and delay in contributions, the UN records show that there has been a downward revision in Nigeria’s scale of assessment, going from 0.25% in 2020 and 2021 to 018% from 2022 to 2024, and 0.15% in 2025.

The downward revision is a result of Nigeria’s economic performance and relative capacity to contribute. With the recent reduction in crude oil revenue and other economic challenges, there are concerns about Nigeria’s capacity to contribute.

UN moves to lay off 20% of workforce

Guterres noted that the mission of the United Nations is now more urgent than ever, and the body is now modernizing its approach to its responsibilities and streamlining costs.

All of these changes would be reflected in its revised estimate for the 2026 budget to be presented in September 2025, with additional changes in the next year.

A key part of the cost-cutting measures is a 20% reduction in the UN workforce, particularly the department for political and peacekeeping affairs, to eliminate duplication of responsibilities.

Guterres said:

“There might be immediate, one-off costs involved in relocating staff and providing potential termination packages. But by moving posts from high-cost locations, we can reduce our commercial footprint in those cities and reduce our post and non-post costs.”

Other departments at the UN headquarters in Geneva and New York are also required to review and advise on what teams could be reduced, abolished, or relocated to lower-cost duty stations.

Nigeria ranks 6th in global population rankings

Meanwhile, Legit.ng earlier reported that Nigeria ranked as the sixth most populous country globally, with its population density reaching 255 people per square kilometre.

Legit.ng reported that projections expect the growth trajectory to continue, playing a key role in global demographic trends.

In line with these projections, the global population is expected to reach 8.09 billion people on January 1, 2025, according to the U.S. Census Bureau.

Proofreading by Kola Muhammed, copy editor at Legit.ng.

Source: Legit.ng