8 August 2012

Nigeria: Reps to Probe U.S.$12 Billion Paris Club Debt Repayment

The House of Representatives will soon investigate the repayment of $12 billion loan to the Paris club by the Federal Government in 2006, Chairman of the House of Representatives Committee on Finance, Abdulmumin Jibrin (PDP, Kano), has said.

Speaking to Daily Trust Jibrin said on resumption in September 19, a motion calling for the probe will be presented before the parliament because information available to them indicates that "some top government officials have enriched themselves in the process that led to the consummation of the agreement with Paris club of debtors."

In April 2006, the Nigerian government under former President Olusegun Obasanjo agreed to pay back its multibillion-dollar debt to the Paris Club of creditor nations after reaching a deal in October 2005.

Members of the Paris Club of debtors include the United States, Germany, France and other wealthy nations that allowed it to pay off about $30 billion in accumulated debt for about $12 billion, an overall discount of about 60 percent and at the time the government said would use the money it saved to develop the country and reduce poverty.

"In the Finance committee, there are some activities that we are going to investigate when we resume. We are also taking a review on issues of loans in this country, we are going to do a comprehensive review on the Paris club debt exit transaction because there are allegations that some people got themselves very much enriched during the process of these transactions," he said.

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