Nigeria gets $18b debt relief

Nigeria gets $18b debt relief

ABUJA: The Paris Club, Nigeria's main external creditor, has granted the country 60 percent (US$18 billion) debt relief, Nigeria's Finance Minister, Ngozi Okonjo-Iweala, said in Abuja on Thursday.

Nigeria's external debt overhang is about $35 billion, $30 billion of which is owed to Paris Club countries.

The decision to grant Nigeria debt relief was taken at a meeting of Club members held in Paris on Wednesday, June 29, Okonjo-Iweala said.

Under the terms of agreement signed with the Paris Club, Nigeria was expected to immediately clear arrears of about $6 billion from the $30 billion owed, she said.

After paying the arrears, "there would be stock reduction on and a buyback of the remainder so as to provide for Nigeria's exit from the debt," Okonjo-Iweala added. -- DPA