/ 11 August 2004

Nigeria’s external debt close to $33bn

Nigeria’s external debt stood at $32,92-billion at the end of last year, Finance Minister Ngozi Okonjo-Iweala told a news conference in Abuja on Tuesday.

Nigeria owes $27,47-billion dollars, 83,45% of its total debt, to the Paris Club of creditor nations, $3,04-billion to multilateral institutions and $1,44-billion to the London Club.

Nigeria owes a further $911,39-million to promissory note holders and $51,63-million to non-Paris Club creditors, Okonjo-Iweala added.

The increase in debt from around $31-billion was largely due to interest payment on arrears that accumulated over the years and depreciation of the dollar against other currencies in which debts were denominated, she said.

The interest component is made up of compound interest of $2,05-billion and a payment component of $124,02-million, she added.

Nigeria’s total external debt service payment between January and June this year was $685,91-million.

The minister said that Nigeria has signed bilateral debt rescheduling agreements with 12 of the 15 members of the Paris Club. These are the United Kingdom, Spain, Belgium, Japan, US, Netherlands, Austria, Denmark, Israel, Switzerland, France and

Brazil.

Nigeria, Africa’s most populous nation, hopes to sign similar accords with Italy, Finland and Russia by the end of this quarter, she added.

More than three-quarters of Nigeria’s 130-million-strong population live in abject poverty on less that one dollar per day.

But creditor nations have refused to admit the country to the most important debt relief programmes, citing its massive oil revenues and history of poor economic management and large-scale embezzlement by its leaders. – Sapa-AFP