Nigeria Versus Creditors: Who Really Owes Whom?

Abstract

By current international standards, Nigeria is Africa’s largest debtor, and indeed, one of the world’s most debt-depressed. In view of that reputation and the stigma normally attached to it, the title of this paper- understandably so- might sound illusory, and may be even ridiculous to many. But even as unbelievable or fanciful as it might sound, there are solid, credible facts and figures that justify its relevance and validity. Conventionally speaking, Nigeria is by all means a huge debtor. In fact, its debt is so huge that hopes for repayment are beginning to fade. But viewed from a more comprehensive standpoint, facts and figures sharply contradict the overwhelming perception of indebtedness. The study, taking a more comprehensive approach, provides a reassessment of Nigeria’s external debt amount, and compares its findings with creditors’ figures. The findings are startling. In contrast to conventional wisdom, Nigeria is actually a net creditor vis-à-vis the rest of the world, with positive net credit ranging from estimates of $51.9 billion to approximately $117.8 billion. The paper concludes with findings that will further intensify the divide between the two sides of the debt debate: those in favor of forgiveness, and those against. The mere prospect of a possible obliteration of the detrimental stigma of indebtedness symbolizes a promise of new possibilities and hopes for Nigeria and other debt-depressed sub-Saharan African countries.