From Africa Recovery, Vol.13#1 (June 1999), page 11 (box within article "Nigeria: Country in Focus")

Africa's biggest debtor nation

Nearly 70 per cent of Nigeria's roughly $29 bn external debt is owed to the Paris Club of government creditors. With its annual debt service obligation at over $4 bn, more than a third of its export income, Nigeria has in recent years pegged its annual budget allocation for actual debt servicing at $2 bn. Lower export earnings forced it to cut this to $1.5 bn in the 1999 budget. Nigeria has met its debt service obligations to its multilateral and commercial creditors but has fallen well behind on Paris Club debts since its last rescheduling deal with the Club expired in 1992. About 60 per cent of the total debt is in arrears, nearly all owed to Paris Club creditors.

In January 1999, the government lifted a 1994 embargo on external borrowing, in the hope of gaining access to highly concessional loans and credits from both multilateral and bilateral sources to help close the financial gap in the budget.

Despite its low per capita income, Nigeria is now not included in the list of 41 countries potentially eligible for the Heavily Indebted Poor Countries (HIPC) initiative developed jointly by the IMF and World Bank. Nigeria was on the original list, but was dropped because it is not an "IDA-only" country, eligible for concessional assistance only through the World Bank's International Development Association, one of the prerequisites for HIPC consideration.

[Back to index] [To Volume13#1 -- full graphics]

Material from this article may be freely reproduced, with attribution to "Africa Recovery, United Nations".
We would appreciate a copy of the reproduction.

Africa Recovery
Room S-931
United Nations
New York, NY 10017 USA

Tel: (212) 963-6857
Fax: (212) 963-4556
Email: africa_recovery@un.org

Website: www.africarecovery.org
Contact us by email: africa_recovery@un.org