What Did US$18 bn Achieve? The 2005 Debt Relief to Nigeria

Since 2003 Nigeria's economic growth has been consistently above 6% and has been driven by non‐oil sectors. This article attempts to assess the contribution of the 2005 debt‐relief agreement to this higher growth. The agreement eliminated Nigeria's US$30 billion debt to Paris Club creditor...

Full description

Saved in:
Bibliographic Details
Published in:Development policy review 2013-09, Vol.31 (5), p.553-574
Main Author: Dijkstra, Geske
Format: Article
Language:English
Subjects:
Conditionality
Debt
Debt cancellation
Debt relief
Debt service
Development policy
Economic agreements
Economic development
Economic growth
Economic performance
Economic policy
growth
Nigeria
poverty reduction
Stocks
Studies
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Since 2003 Nigeria's economic growth has been consistently above 6% and has been driven by non‐oil sectors. This article attempts to assess the contribution of the 2005 debt‐relief agreement to this higher growth. The agreement eliminated Nigeria's US$30 billion debt to Paris Club creditors who cancelled US$18 bn, while Nigeria paid back US$12 bn. The article traces the three possible impact channels of debt relief, namely, the flow (reduced debt service), the stock (removal of debt overhang) and the conditionality channel, and comes to the conclusion that the debt‐relief agreement played a key role in the country's improved economic performance, in particular through successful conditionality.
ISSN:0950-6764
1467-7679
DOI:10.1111/dpr.12025