IMF board ratifies Nigeria’s debt relief

[Richard Akindele]

THE Board of the International Monetary Fund (IMF) sitting in Washington, yesterday, gave approval to the Policy Support Instrument (PSI) approved for the October 2005 debt relief granted to Nigeria by the Paris Club.



By NIK OGBULIE, Daily Champion


This ratification is seen as the major instrument approval that the country needs to officially disentangle herself from the debt burden of the club.

Indications are rife that the approval will come with some other benefits of complete IMF endorsement of Nigeria’s National Economic Empowerment and Development Strategy (NEEDS) as well as creating new windows for the club to consider another grant which could lead to the outright debt relief.

Details of the meeting are unclear.


This development was called for because the Paris Club had asked for IMF approval of Nigeria’s roadmap to economic sufficiency as a prelude to finally ratifying the negotiation which was agreed upon six months ago.

The approval will be a basis for the furtherance of new debt relief considerations.

This development is equally believed to be a global acceptance of Nigeria’s economic development initiative as proposed from the perspective of the Nigerian environment without recourse to the existing framework as promoted by the IMFA and other global economic powers.

The PSI approach has become very necessary as a further way of monitoring activities of developing economies of countries that do not really need the IMF financial support but need a great deal of their advice in the realisation of some policies like the NEEDS.

Nigeria is expected to repay some $12.4 billion to the club based on earlier agreement.
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