The Paris Club confirmed it already signed the agreement granting the cancellation of $18 billion or some 60 percent of Nigeria?s debts. Under the deal, Nigeria will settle $6 billion of its arrears using windfall from oil exports, have 67 percent debt reduction and buy back the balance at a discounted rate of 25 percent. In all, Nigeria committed $12.4 billion to underwrite the settlement. Finance minister Ngozi Okonjo-Iweala defended the proposed expenditure, arguing that the country may not get such rare opportunity again. Moreover, the deal, she said, would bring down the nation's risk premium, attract investments and enhance international perception of Nigeria. (Sources: Paris Club agrees debt deal with Nigeria-source/Reuters; Nigeria agrees deal to cancel $18bn owed to lenders/Financial Times)
