US embassy cable - 01ABUJA3022

UNCLAS ABUJA 003022 
 
SIPDIS 
 
 
TREASURY FOR SONAL SHAW AND MATT TURNER 
 
 
E.O. 12958: N/A 
TAGS: ECON, EFIN, NI 
SUBJECT: NIGERIA: GON SEEKS MEETING WITH PARIS CLUB 
CREDITORS 
 
1. This cable contains an action request in para 4. 
 
 
2. EconOff spoke November 28 with Debt Management Office 
(DMO) Director-General Akin S. Arikawe.  Arikawe expressed 
concern over FY2002 Paris Club payments.  Specifically, he 
said the FY2002 proposed budget allocates N187 billion (USD 
1.55 billion at a rate of N120:USD1) for external debt 
servicing, down from USD 2 billion in FY2001 due to lower oil 
prices and a smaller OPEC quota.  Of the USD 1.55 billion, 
the DMO estimates the GON will pay USD 834 million to 
non-Paris Club creditors, including multilateral institutions 
and the London Club.  FY2002 Paris Club payments would, 
therefore, equal roughly USD 720 million, representing less 
than one-third of payments due for the year.  According to 
DMO calculations, the GON will owe a total of USD 2.268 
billion to the Paris Club in FY2002.  This figure includes 
overdue arrears from 2001. 
 
 
3.  Arikawe said the GON wants to meet soon with the Paris 
Club to discuss GON concerns and receive feedback from the 
creditors.  Arikawe has sent the same request through both 
the IMF and World Bank to Paris Club countries. 
 
 
4. Action Request: Post suggests that Washington consider the 
merits of such a meeting and inform Post soonest. 
Jeter