Nigeria’s House of Representatives has called on the government to halt further repayments on the country’s staggering $34-billion in external debts.
The motion, approved by the Lower House, said the debt burden is a brake on social and economic development.
The legislators said that despite the huge amount spent so far on servicing the debts, the amount owed continues to increase because of accrued interest.
The motion called on President Olusegun Obasanjo, who has led a campaign for debts rescheduling and forgiveness, to ”cease forthwith further external debt payment to any group of foreign creditors”.
The Senate is expected to pass a similar resolution.
Nigeria’s external debts rose from $32,9-billion in December 2003 to $34-billion a year later.
Last week, the director of the country’s Debt Management Office, Abraham Nwankwo, said Nigeria has paid $42-billion over the past 38 years to service a $13,5-billion debt from the Paris Club of creditor nations.
Yet Nigeria still owes $25-billion to the Paris Club alone because of the accumulation of interest, Nwanko said.
He said the country is trapped in an ”endless cycle of debt burden”.
Officials said servicing the debt costs Nigeria about $2-billion a year. — Sapa-AFP