nigeria's foreign debt
Submitted by antarchi on May 18, 2009 - 21:01
In 2002 Nigeria was producing around 2 million barrels of oil a day. Crude oil accounted for 80% of government revenue and 90% of foreign exchange earnings. The approximate $11 billion earnings from oil sales, shared equally, would give each Nigerian about 27 cents a day. But Nigeria racked up financial debts of $5.6 billion at market rates under its military dictators. Just servicing its debts in 1999 and 2000 cost Nigeria $1.4 billion each year. Several mainstream banks, including Barclays, HSBC and Merill Lunch were censured by City regulators for flouting anti-money laundering rules in relation to accounts linked to Nigerian dictator General Abacha. He stole an estimated $4 billion from his country...
Nigeria, however, still has to keep paying [the debt] with the revenue from its oil.
