 Nigeria is about to become the first African nation to clear its debt to Western nations. President Obasanjo has announced that by today, the $40 billion debt owed to the Paris Club group of Western creditors will be cleared. The move will clear the way for greater government spending on infrastructure, health care and education.
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Nigerian High Commissioner in London, Dr Christopher Kolade, says it is also hoped it will prompt greater foreign investment. "Obviously this is of great significance to us because the debt burden that we've been carrying for years and years has been a very definite restraint on development," he said. "For as long as we had to service these fairly heavy debts, we had to separate quite a substantial proportion of our resources towards that end." |