African debt and the debate on stabilisation: The case of Nigeria

Nigeria is an important test case of the socio-political effects of debt in Sub-Saharan Africa. First, its level of debt is greater than that of any other nation on the continent. Second, its oil wealth bought it a degree of influence in international relations as evidenced by the leading role played by Nigeria in negotiating the first Lomé Convention. It seems possible that Nigeria may also have a leading influence in determining the reaction of other African states to the debt crisis. Third, Nigeria has taken an ‘independent’ line in dealing with its debt obligations, preferring to keep the IMF at arm's length. Fourth, Nigeria has helped to pioneer the use of techniques such as countertrade and partial default in the management of its debt crisis. This paper surveys the politics of Nigerian debt with a view firstly to assessing what light it throws on the merits and demerits of the IMF medicine for indebtedness and, secondly, to determine whether or not it has produced any viable alternatives to this medicine.