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Nigeria Intends to Pay Off Debt

Nigeria may pay off its multi- billion dollar Paris Club debt on Friday, becoming the first African nation to settle with its official lenders. The move may clear the way for greater government spending on infrastructure, healthcare and education, and is hoped will prompt greater foreign investment.

Nigeria has undertaken a program of economic reforms and the oil exporter has been helped by record crude prices. The Paris Club is a group of 19 lenders including the UK, Russia, and Germany. After the deal, Nigeria still will owe about $5 billion to other lenders, including the World Bank and the private sector.

Nigeria is one of the world`s biggest oil exporters, and yet also one of the world`s poorest countries, with the majority of the population living on less than $1 per day. The government is now benefiting from high oil prices, despite production problems and unrest in the Niger Delta region.