Just read in the papers about Nigeria's Readiness for a showdown, should her foreign creditors fail to consider the "'30 cents for each dollar owed" option.

Under this option, Nigeria will pay 30 cents of every one dollar that was owed. Punch newspapers reported that the Pounds fell slightly against the dollar at the announcement that Nigeria could take the repudiation option. The UK market is afraid Nigeria could say "e don do, we no dey pay again, abi na by force!"

According to Alhaji Farouk Lawan, House of Representatives’ Finance Committee chairman “It is unconscionable that Nigeria has paid £3.5billion in debt service over the past two years, but our debt burden has risen by £3.9billion – without any new borrowing. We cannot continue"

Presently we have a foreign reserve of $17 billion plus, and we could as well pay off the debt if given concession , otherwise, I think its a convenient point to say enough is enough!

Here are some references in the news:

"Nigeria is heading towards an Argentinean-style default on its $33 billion of overseas debt unless western creditors accept a deal to alleviate the country's financial burden, The Guardian (UK) reports a delegation from west Africa's biggest economy said in London yesterday." (Nigeria At Risk Of $33 Billion Default - Noticias.info)

"On the face of it, this may not be the best time for an oil exporting country to ask forgiveness from its creditors. When that country is Nigeria, where for decades the proceeds of both oil and borrowing have been squandered and embezzled, it becomes even harder to get taken seriously." (Nigeria's Debt - FT.com)

[url=http://www.guardian.co.uk/business/story/0,,1470480,00.html]The Original Guardian UK Article[/url]

For those of us who are into Economics or Finance, the following articles talk about Argentina's very similar situation: Argentina's Debt Restructuring, Learning from Argentina's Crisis. (they simply stopped servicing their debts at a point, forcing creditors to negotiate with them and reduce their debts! )

What if the International community decides to sanction us? They may feel that by accomodating us they would be encouraging other debtors to do the same!

As for the sanction, if Nigeria could make a strong political statement as regards its fight against corrupton, its economic reforms, diversification of the economy and her increasing foreign reserve, it might get the International Community to stand on its side and plead on her behalf--against any sanction.

A strong press is also important here. I wonder why the Foreign Press talks about Nigeria being at risk and not about her creditors being at risk of loosing their money. This is the power of the press and a lot of people would have misunderstood this to mean 'another setback' to the country--instead of a setback to her creditors.

I feel the Nigerian Press and their affiliates in the International community should stand up to correct false impressions the international press creates. I feel they are not being fair enough. As much as Nigeria stands the risk of being sanctioned, the creditors stand the risk of loosing their money for good! which they didn't mention.

Our press should stop accepting International media reports if they are wrong. The Economists and the Time magazines of this world should be challenged if they are wrong. Our press can only keep mute when they know they are not knowledgeable enough to stand an intellectual tussle. Our press should start believing in themselves and affirming what they know is right, not only to local audience but to the world at large...Thats when we are using Information as a tool for development.

Sanction ke? Thanks to China, oil is at an all time high and if Nigeria decides not to sell oil for just five weeks, the US economy risks heading for a recession. Check for weak dollar on Google. It's time we stopped paying for all inherited debts. If they don't play ball then we will play hardball.

The debtor finally has found his(or is Nigeria her?) voice and she's ready to tell all the world that " bros i don tire!)

Nigeria has pleaded for debt forgiveness, but she has been told she's not qualified to be forgiven. Our debt profile keeps rising( its funny sometimes when the president and the creditors even disagree over tyhe exact volume of our debts!)

I for one is in support of Nigeria as a country refusing to pay such debts(of course, who likes paying debts- its damn hard you know!)

But in this, there are things we have to take into cognisance, what was the deal when we signed the bonds for the credit? how does it tell on our integrity(you loan money and you are reusing to pay!),how sincere will our future leaders be in the future as regards the issue of debts, loans and letters of credit? which efforts are we making not be in the mire again, (say for example we are able to get off the debts as easily as we want to,how do we plan to manage our economy without having to go aborrowing again?)

I think it is still in our best interest as a country to get the issue of this credit behind us by seeking the

a. Complete debt forgiveness, if this is not possible

b. Discounting of our debts

c. But I think above all, we need our economy to be given a boost. DIVERSIFICATION!

d. A new crop of leaders, not those who pay lip service to corruption

e. Believe me, if we are forgiven this debt, I am sure we will soon start to incur more debts, except there is a complete reorientation of the average Nigerian psyche.

I read in GUARDIAN newspaper of 03/5/05 that U.S. lawmakers may okay Nigerria's $35b debt relief bid.

I guess a lot of people are beginning to take interest in our situation. Well the British press is taking note.

solo2 and allenpowered, thanks for the tip! That is what Nairaland is all about.

From the Punch:
"Nigeria’s bid for debt relief has received a major boost, with the influential The Guardian newspaper of London calling on the international creditors to write off the $34 billion debt."

[url=http://www.guardian.co.uk/leaders/story/0,,1474590,00.html]Guardian Newspaper of London[/url]:
"Nigeria certainly deserves both aid and debt relief. The more help that Africa's largest country receives, the better off the whole continent will be as a result. A healthy, strong Nigeria could be the catalyst for the economic growth the region so badly needs to escape the clutch of poverty. Much of Nigeria's existing debt is odious - loans taken by an illegitimate regime, which is unfairly saddled onto the backs of future generations. It should be written off, and money saved to help meet Nigeria's development goals. To do so would send an important signal: that the international community is prepared to encourage and reward the fragile efforts at reform now taking place in Nigeria."

I guess we can continue this discussion under the topic $18 billion debt relief package for Nigeria.

This seems like the first thread in the Politics section

And now we are even in more debt.

2005 was a long time ago...