Nigeria’s finance minister is campaigning hard for debt relief for the country and finding plenty of sympathy but little action so far.James Eades reports.Nigeria’s finance minister, Ngozi Okonjo-Iweala, is on the road to convince the country’s creditors to forgive its debts. Two months into the year hailed by many as the year of Africa, the timing arguably could not be better. But she is finding that a sympathetic hearing does not necessarily equate with actual debt relief.
Like many other developing countries, the small and medium enterprise (SME) sector in Nigeria is considered crucial to job creation and broad-based economic development. Indeed, SME development has been a high priority ever since the transfer to civilian rule in 1999.
Barely a month in the job, new Central Bank of Nigeria governor Charles Soludo has thrown down the gauntlet to the country’s banks. By demanding a huge hike in minimum capital requirements, Mr Soludo is forcing the weak and fragmented industry to consolidate, in a move that he insists will result in a stronger banking system that plays a more active role in economic development.