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A buyback to resolve Nigeria's debt problem

Debt relief and African poverty are firmly on this year’s global agenda, most recently from the Tony Blair-sponsored Africa Commission. But little attention is going to the big elephant in the room: Nigeria.

Even with its oil wealth, Nigeria’s debt burden is enormous given its huge population of 130 million and its extreme poverty—average income is just $330 per year. Increasingly vital to Western energy security, Nigeria is also a worrying source of transnational security threats, including Islamic radicalism, disease, drug trafficking, and international crime.

Debt Relief and the MDGs

This note links the relevance of debt relief to one of the great challenges of our time: achieving the Millennium Development Goals (MDGs).

Providing New Financing to Low-Income Countries with High Levels of Debt: Some Considerations

Low-income countries with high levels of debt face a dilemma when considering new financing. Additional funding is needed to meet key development objectives, but too much new financing in the form of debt can exacerbate debt problems. Countries that borrow too much – even on concessional IDA terms – can quickly find themselves facing rapidly rising debt ratios that could threaten debt sustainability in the future.

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