Posted by By Oluyinka Akintunde on
The Federal Government has appointed a United States Law firm as legal advisers to facilitate Nigeria's final exit from the London Club debt valued at $2.4bn.
The Federal Government has appointed a United States Law firm as legal advisers to facilitate Nigeria's final exit from the London Club debt valued at $2.4bn.
The London Club debt, which consists of oil warrants, promissory notes and par bonds, currently accounts for 49.5 per cent of Nigeria's outstanding debt of $4.847bn.
A Presidency source, who confirmed this development to our correspondent in Abuja, said the appointment was made on Friday.
The source, however, declined to reveal the name of the US law firm because President Olusegun Obasanjo, and the Minister of Finance, Mrs. Nenadi Usman, were yet to be briefed on the development.
According to the source, the US firm, in collaboration with the Nigerian Law firm, is expected to review the existing legal documentation for the par bonds and promissory notes as regards Nigerian laws.
The firm is also expected to assist in the preparation of legal opinion to be issued in accordance with the Nigerian laws.
Our correspondent gathered that the Federal Government might drop the three investment banks it initially appointed to help restructure the country's London Club debt.
The three investments banks include: JP Morgan Chase Bank, Citigroup Incorporated and Merrill Lynch and Company Incorporated, all based in United States.
The three were among the six investment banks that had applied for the job. Others include: UBS of Switzerland, Credit Suisse of Switzerland, and Deutsche Bank of Germany.
When asked if government would continue with the services of the three investment banks regarding the London Club debt, the source said, 'The legal advisers, which were appointed on Friday, will represent the Nigerian Government's interest in the issue of the London Club debt.
'We now need to engage the lawyers in discussion and take stock of the situation on the ground. They are going to represent our interests."