Nigeria’s government is euphoric after securing debt relief from its biggest creditors, but the pressure is on to produce benefits for a skeptical population used to seeing the nation’s wealth squandered and stolen.

Lagos: Nigeria’s government is euphoric after securing debt relief from its biggest creditors, but the pressure is on to produce benefits for a skeptical population used to seeing the nation’s wealth squandered and stolen.

The Paris Club of rich lenders said on Thursday it had agreed in principle on a debt relief package for Africa’s most populous nation in what President Olusegun Obasanjo hailed as “one of the pillars of success of this administration.”

Obasanjo appeared on national television late on Thursday to congratulate himself and his team of economic reformers for persuading creditors that Nigeria, ostracized during 15 years of corrupt military dictatorship, now deserved debt relief.

“It vindicates the steadfastness, sacrifices and tenacity of this government in its struggle to win relief from the global community in order to give us the required breathing space to make more progress,” he said in an address to the nation.

On Friday morning, the newspapers brought the excitement down a few notches.

“Forgiven, what next?” asked the widely read independent newspaper The Punch. Commentators agreed Nigeria had scored a big success, but they saw even more awesome battles ahead.

Lease of life

“The greatest challenge before the government is how to translate the debt relief into a meaningful lease of life for the Nigerian economy and an improved standard of living for the population,” wrote columnist Ademola Ogunlowo.

“Debt relief would relieve the nation of a financial burden … but it would certainly not solve the problems of corruption, resource misallocation and inconsistent policies.”

The word from the street was even less diplomatic.

“It’s just more money for them to get fat,” said Sam, a taxi driver, referring to corrupt officials.

Obasanjo has moved to tackle graft and as the campaign for debt relief intensified a few people in high places lost their jobs. But anti-graft activists say the efforts are sporadic and point out there have been no convictions of power-brokers.

Nigeria is the world’s eighth-biggest oil exporter, but with an estimated 140 million inhabitants its income per capita is among the lowest in the world.

Millions of Nigerians have no clean water or electricity. Hospitals lack drugs, schools lack books, roads and telephone lines are in decay and preventable diseases are rife.

Obasanjo, a former military ruler who came to power as a civilian in 1999, has so far failed to make a significant impact on the daily lot of Nigeria’s poor.

Estelle Shirbon, Reuters, July 1, 2005