Germany granted Nigeria debt relief worth $3 billion yesterday, a reward for President Olusegun Obasanjo's anti-corruption war and the culmination of a sustained campaign for debt forgiveness from creditor nations. Meanwhile, France has expressed hope that the Policy Support Instrument ( PSI ) required by the Paris Club to begin negotiations on the $12 billion debt deal 'buy back' with Nigeria will be settled soon so that the country could become the first beneficiary of the PSI.
Germany's Ambassador to Nigeria, Dietmar Kreusel, expressed satisfaction at having cancelled the debt. Germany is a member of the Paris Club, which in June granted Nigeria some 60% reprieve on its external debt of about $31 billion. As of the end of December 2004, Nigeria owed about $5.23bn, representing some 17% of its total Paris Club, debt to Germany.