Supporting agreements with the international institutions
Program with the IMF approved on August 04, 2000
Total external debt of the country
$33 500 million as of December 31, 2000
$24 500 million of which being due to Paris Club as of December 31, 2000
Amounts treated
Accorded treatment
Restructuring of the external debt
Categories of debt treated
Treatment of arrears as of July 31, 2000
Treatment of maturities falling due from August 01, 2000 up to July 31, 2001
Repayment profile
Treatment under Houston terms
- repayment of non ODA credits over 18 years, with 3 years of grace
- repayment of ODA credits over 20 years with 10 years of grace
Specific provisions
Possibility to conduct debt swaps
On a voluntary and bilateral basis, the Government of each Participating Creditor Country or its appropriate institutions may sell or exchange, in the framework of debt for nature, debt for aid, debt for equity swaps or other local debt swaps : (i) all ODA loans ; (ii) amounts of outstanding credits, loans and consolidations on debts [treated in the present Agreed Minute] other than official development aid loans, up to 10% of the amounts of outstanding credits as of December 31, 1990 or up to an amount of 20 million SDR, whichever is higher. Participating Creditor Countries and the Federal Republic of Nigeria will inform semi-annually the Secretariat of the Paris Club, who will inform other creditors, of the debt swap agreements they have implemented. All elements necessary to evaluate the operation, its impact on the Federal Republic of Nigeria's economy and on the evolution of creditor's exposure will be transmitted to the Secretariat, including : its nature and purpose ; the parties to the debt swap ; the amount, type and value of the debt treated ; the price of sale to investors and the expense of the Federal Republic of Nigeria.
Entry-into-force provision
The provisions of the present Agreed Minute will enter into force on April 15, 2001 unless Participating Creditors Countries consider that the following conditions are not fulfilled :
- satisfactory payments to Participating Creditor Countries on amounts due pursuant to the provisions of [the present Agreed Minute] or ;
- satisfactory implementation of the stand-by arrangement with the Government of the Federal Republic of Nigeria approved by the Executive Board of the International Monetary Fund on August 4, 2000. For this purpose, the IMF will inform the Chairman of the Paris Club regarding the status of the relations of the Federal Republic of Nigeria with the IMF.
Agreement implemented on April 15, 2001
Good will clause
If the Government of the Federal Republic of Nigeria implements fully the present Agreed Minute, maintains satisfactory relations with Participating Creditor Countries and the International Monetary Fund, successfully completes the current program with the International Monetary Fund approved on August 4, 2000 under the stand-by arrangement, and has an appropriate follow-on medium term arrangement with the International Monetary Fund, the representatives of the Participating Creditor Countries agreed in principle to consider possible options in further restructuring of Nigeria's debt falling due after July 31, 2001 consistent with Nigeria's medium and long term capacity to repay.
Free transferability provision
The Government of the Federal Republic of Nigeria guarantees free and unrestricted access to the foreign exchange market, allowing immediate and unrestricted transfer of the foreign exchange counterpart of all amounts paid in local currency by the private debtors in Nigeria for servicing their foreign debt owed to or guaranteed by the Participating Creditor Countries or their appropriate institutions, and not subject to the present consolidation.
Pullback clause
The Participating Creditor Countries will review the implementation of the conditions stated in [the present Agreed Minute]. If, in light of the decisions taken by the Board of the International Monetary Fund, the Participating Creditor Countries determine that these conditions were not fulfilled for the implementation of the present Agreed Minute they may declare part or all of the provisions set forth [...] in the present Agreement null and void.
De minimis threshold of 1 500 000 SDR
Payment of non-consolidated amounts before June 30, 2001
Comparability of treatment provision
In order to secure comparable treatment of its debt due to all its external public or private creditors, the Government of the Federal Republic of Nigeria commits itself to seek promptly from all its external creditors debt reorganisation arrangements on terms comparable to those set forth in the present Agreed Minute, while trying to avoid discrimination among different categories of creditors.
Consequently, the Government of the Federal Republic of Nigeria commits itself to accord all categories of creditors -and in particular creditor countries not participating in the present Agreed Minute, and private creditors- a treatment not more favourable than that accorded to the Participating Creditor Countries for credits of comparable maturity.
For the purpose of the comparison between the arrangements concluded by the Government of the Federal Republic of Nigeria with its creditors not listed in the present Agreed Minute on the one hand, and with the Participating Creditor Countries on the other hand, all relevant elements will be taken into account, including the real exposure of the creditor not listed in the present Agreed Minute, the level of cash payments received by those creditors from the Government of the Federal Republic of Nigeria as compared to their share in the Federal Republic of Nigeria‘s external debt, the nature and characteristics of all treatment applied, including debt buy backs, and all characteristics of the reorganized claims and in particular their repayment terms whatever forms they take and in general the financial relations between the Government of the Federal Republic of Nigeria and the creditors not listed in the present Agreed Minute.
Cut-off date
October 01, 1985
Organisation of the session
The meeting was chaired by Mr. Bruno BEZARD, Vice Chairman of the Paris Club.
The head of the debtor country's delegation was Mr. Philip ASSIODU, Economic Adviser of the President.
Files attached
NG13122000CPEN6870.pdf (12.33 KB)