The Paris Club cartel creditor nations confirmed week proposed debt relief dealwould grant Nigeria debt write-off 67 per cent ($18 billion). Under arrangement, Nigeria would still required repay $12 billion its total $31 billion sovereign debt arrears owed foreign governments, well abide conditions an International Monetary Fund (IMF) economic program, which includes cuts social spending increased privatization public services. Debayani Kar, communications advocacy coordinator Jubilee USA, saidParis Club write-off “demonstrates partial success Nigerian parliament’s threat cancel its own debt through repudiation, which helped force hand these creditors”. But, she said, “we don’t think makes sense make an impoverished country like Nigeria pay $12 billion when money should spent on AIDS, health, education”.Sony Kapoor Christian Aid (UK) welcoming confirmation Paris Club deal agreed ” took threat repudiation get cancellation”.

Nigeria’s House Representatives passed non-binding resolution March halt payments on country’s external debt, highest any country Africa. resolution stated Nigeria’s economy had been “devastated series military regimes 1984 1999, who stole billions dollars state coffers” compared Nigeria’s situation “countries emerging war.” However, Nigerian Senate later voted honour debt servicing year.

As if “the obvious need people odious nature much debt were not enough,” Sony Kapoor adds, “what worse creditor countries are extracting pound flesh form $12 billion worth payments Nigeria have put place new IMF program despite Nigeria not owing anything Fund.”

On more positive note, he said, “the deal has set scene more assertive negotiating stance other indebted developing countries.”

David Ugolor, president African Network Environment Economic Justice (ANEEJ), weighed in, saying: “The Paris Club cannot expect Nigeria, freed over 30 years military rule, muster $12 billion pay off interest penalties incurred military. Since debt, [the current president’s] own admission, dubious origin, issues responsibilities creditors must put on table Paris Club.”

Dr. Paul Zeitz, director Global AIDS Alliance, took aim creditors declared should “ashamed themselves if simply take money”.

According Dr. Zeitz: “These creditors often knew [their loans] would siphoned off [African] dictators deposited western banks.”

Other commentators are skeptical whether monies freed up debt relief will spent on real improvement Nigerians, given country’s long struggle with corruption. its most recent corruption survey, global graft watchdog Transparency International ranked Nigeria sixth most corrupt nation world, although sixth-place does mark an improvement over its previous listing world’s third most corrupt nation.

Asked how ensure money saved on debt payments would put good use David Ugolor ANEEJ said ” responsibility Nigerians demand Nigerian government,” Business Week Online reports.

However, reported previously Odious Debts Online, debt cancellation far holding looters responsible, sets them free. Although threat repudiation might prompt creditors negotiate write-offs, unless odious debts are challenged legally respect people’s rights, rule law due diligence will set aside well.

“An odious debts challenge Nigeria under international rules arbitration would serve citizens around world who are burdened with odious debts: would set an important precedent would give future creditors – public private – clear incentive lend only purposes are transparent public benefit. would help change culture international lending reduce moral hazard has destabilized international finance past 60 years,” says Patricia Adams, who resurrected International Doctrine Odious Debts seminal book, Odious Debts: Loose Lending, Corruption, Third World’s Environmental Legacy (Earthscan, 1991).

But most important, Ms. Adams adds, would serve Nigerians’ best interests signaling current Nigerian administration will guided rule law rather than rule cronies.

“That will immense good economic confidence Nigeria public confidence country’s future.”