Nigeria is finally facing up to its weighty debt problem, lobbying hard for debt relief from international creditors and improving debt management at home. It is a long overdue move and made possible only because finance minister Ngozi Okonjo-Iweala is wrestling back control of government finances and slashing deficit spending.
In July, Nigerian vice-president Atiku Abubakar was in London canvassing support for debt relief. About 83% of Nigeria’s external debt is owed to Paris Club creditors. Bilateral debt rescheduling agreements have been signed with 12 of the 15 members and the aim is to sign similar accords with the remaining three members by the end of the year.
