30 June 2005

ActionAid welcomed today’s announcement that US$30 billion of Nigeria’s debt is to be written off. ActionAid and Oxfam will be on a steering committee that will monitor a special anti-poverty fund set up with the proceeds.

Romilly Greenhill, ActionAid policy officer said: “This is good news. Nigerians have been paying out in debt repayments nearly six times the amount they receive in aid. As home to one in five Africans, progress on debt in Nigeria is critical to progress on poverty in Africa.

“This is the first time that a country outside the heavily indebted poor countries initiative is receiving major debt relief. It sets an important precedent. The world has recognised that Nigeria should not be saddled with debt contracted by its previous military dictators, much of it spent on arms.”

The ‘Paris Club’ announcement will save Nigeria US$1billion a year, which will be diverted to education, health and anti-corruption initiatives. ActionAid, Oxfam and other civil society organisations will monitor the fund.