Unlike the economic struggles Nigerians face today, there was a time when Nigeria’s oil wealth positioned it as a major player on the global stage, allowing the country to emerge as a significant lender to international institutions and fellow African nations.
During the 1970s, Nigeria, under the leadership of General Yakubu Gowon, not only secured its place as a leader in Africa but also showcased its financial might by providing substantial loans to international financial bodies such as the International Monetary Fund (IMF) and the World Bank.
In fact, Nigeria lent $240 million to the World Bank and $120 million to the IMF’s special oil facility, aimed at helping countries cover their oil import requirements.
This bold move marked Nigeria as a country with the means to aid other nations during an era of economic strain caused by fluctuating oil prices.
According to a confidential report, the Caribbean Development Bank has become the latest beneficiary of Nigeria’s modest aid efforts in recent years, aimed at advancing the country’s claims to leadership in Africa and on the international stage.
It reads, “General Cowon announced a $2.5 million loan to the bank upon his return from the recent Commonwealth heads of state conference in Jamaica and official visits to Barbados, the Bahamas, and Guyana.
“Since 1972, Nigeria has extended approximately $380 million in known loans and grants to individual governments and international financial institutions.
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“Of this total, Nigeria has lent $240 million to the World Bank and $120 million to the International Monetary Fund’s special oil facility that makes loans to countries to help cover their oil import requirements.
“The remaining $20 million has been distributed largely in Africa, particularly to the countries of West Africa and to regional organizations such as the Organization of African Unity and the African Development Bank.
“Nigeria, black Africa’s most populous country, is using the bulk of its oil wealth oil earnings totalled $8.9 billion in 1974 to finance domestic development programs aimed at improving the lot of its own citizens whose per capita income averages less than $300 per year.
“The military government is determined not to let its aid activities become a drain on the Treasury. In the future, General Gowon has said that the country will emphasize loans to development banks rather than bilateral assistance.
“The Nigerians probably feel that development banks are in a better position to ensure that the loans will be used for the purposes given and that they will be repaid.”
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