20 October 2005

International development agency ActionAid today welcomed reports that the Paris Club of creditor nations has agreed a debt relief deal with Nigeria worth $18bn (£10bn), but expressed fears that negative conditions threaten to undermine the agreement.

Otive Igbuzor, ActionAid country director for Nigeria, said: "This announcement is welcome in a country which has been crippled by the burden of external debt.

"But we are concerned Nigeria must now implement harmful IMF policies, such as cutting spending and privatisation, as a condition for debt relief. These policies have often hurt, rather than helped those most in need.

"The deal also requires Nigeria to pay back $12bn to its creditors at once. Nigeria can ill afford to lose this money as more than half of its population lives in poverty.

"Most Nigerian debt was lent to corrupt dictators by irresponsible creditors. These creditors should now recognise their responsibility and fully cancel Nigeria's debt."