Nigeria: Debt cancellation deal comes at a price

Creditor countries have in principle agreed to cancel around $17 billion of Nigeria's debt. This debt cancellation is long overdue - but is being implemented in a way that could mean Nigeria paying more money to the rich world in the short term. The deal was agreed by the Paris Club, a creditor cartel of 19 rich countries. The UK (which is Nigeria's biggest creditor) was the strongest advocate for debt cancellation for Nigeria, having come under strong pressure from campaigners. The offered cancellation of $17 billion is a huge amount - but it is dependent on Nigeria paying off arrears of about $6 billion, and 'buying back' around $8 billion of the debt.