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Nigeria: Foreign Debts, Stolen Wealth, IFIs and the West

Source: AFRODAD

This research undertakes a comprehensive analysis of Nigeria's stolen wealth and foreign loans conundrum within the current global context. In essence, the work establishes a critical linkage between the two variables-stolen wealth and foreign loans-on the one hand. It sets out to show that the inflow of foreign loans generated a pool of funds from which thieving Nigerian leaders and their elitist collaborators created stolen wealth, most of which were then stashed abroad in banks located in the West. At the end of the day, therefore, these loans later became unsustainable debts since they didn't
deliver their target projects in Nigeria.

On the other hand, the research points out that the IFIs and sovereign governments of the West contributed to the scourge A Case Study 45 of stolen wealth and foreign debt in Nigeria. Firstly, for instance, this is so because they provided a safe haven for the nation's stolen wealth in fragrant violation of their own laid-down banking and anti-money laundering laws. Secondly, the IFIs and the West are implicated in Nigeria's debt crisis because they consciously gave loans to incompetent and corrupt regimes in Nigeria even when they also realized that Nigeria's projected export earnings could not sustain the repayment of the loans they were giving.

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