Economic and Financial Review


Central Bank of Nigeria


Debt, Debt Equity Swap, Private Investments, Nigeria


This paper reviews the concepts and strategies for debt-equity swaps, presents the Nigerian experience and assesses the outcome, problems and performance noting the role it plays in stimulating private investment. The study shows that although Nigeria's debt conversion programme is similar to other developing countries' programmes, it is principally targeted at debt-equity and debt for conversion. Preliminary outcome so far shows that the cumulative debts eliminated from Nigeria's debt portfolio, through the DCP was $606.7 million (as at October 1991) representing approximately 5.2 per cent of debt service obligations. Ninety-nine (99) projects attracting a cumulative sum of N-2,400.8 million benefited from investment under DCP. The slow pace of patronage of the debt equity swap programme was attributed to some factors among which were the need to forestall excessive growth in monetary aggregates, and hesitation on the part of the private sector as to the future direction of the programme. In concluding, the paper notes that there is a good potential for stimulating private investment in Nigeria through the DCP given the magnitude of outstanding foreign debt.

Author Bio

Mr. E.I.K. Sule is a Deputy Director of Research in the Central Bank of Nigeria

Publication Title

CBN Economic and Financial Review





Recommended Citation

Sule, E. I. K. (1991). Viability of Debt Equity Swaps as Instruments for Stimulating Private Investments in Nigeria. CBN Economic and Financial Review. 29(3), 224-238.



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