Nigeria's Debt Relief Package and the Contradictions of CommoditY TraP

Recently Nigeria was a granted debt relief package by the Paris Club totalling us$18 billion or 60 percent oithe total deit owed it by Nigeiia. ThL Country is expected to pay the balance of 40 percer-rt or US$12 billion beginninfi wltn us$o billion arrears in september 2005 and the remaining US$6 billion throigh deit buy-Uack at market vaiue' There is optimism that the savings iud" fro* debt service commitments and the prospects of debt freedom would tfigger a spurt of prosperity that would propel Nigeria to economic growth and development' It is the contention of this work that tiris optimism is misplaced, as the fundamental condition for economic development, which is eionomic iustice, has not been addressed' The injustice of consigning Nigeria and other Third world countries to the periphery of the global economic systeir wilere they produce primary commodities whose terms of trade are precarious is respousible for their underdeveloprnent The continued retention of the present international eco'ro*ic system with detrimentaf division of iabour is antithetical to real development' Unless this is redressed no amount of debt relief will transform Nigeria and Third World cottntries to genuine develoPment