Developing countries stand to benefit from up to $10 billion in savings after the G-20 group of wealthy nations announced the debt relief on Wednesday.
Already, Finance ministers of G-20 countries have approved an extension of debt relief for the world’s poorest nations to December 2021 and Nigeria is expected to be a beneficiary.
David Malpass, World Bank president, made the announcement at the virtual spring meeting, on Wednesday.
The G-20 countries will meet this week to consider an extension of the debt freeze.
The G-20, is a group of finance ministers and central bank governors from 19 of the world’s largest economies, including those of many developing nations, along with the European Union.
G-20 countries had established a debt service suspension initiative (DSSI) which took effect in May 2020.
Nigeria had benefited from the initiative which delivered about $5 billion in relief to more than 40 eligible countries.
The suspension period which was originally set to end on December 31, 2020 was extended to June 2021.