Volume 3 Issue 6
The Impact of Public Debt In Nigeria’s Economic Growth And Development
This research work examined the effect of public debt on Nigeria Economy by specifically determining the relationship between public debt and Economic growth of Nigeria. This study examined the impact of public debt on economic development of Nigeria using annual time series data spanning. Nigeria had her external demand to the major creditors amounted to 36.2 billion US dollars in the year 2011 at the exchange rate #135 to a US dollar and the total domestic was estimated as 23.9 billion US dollars in 2011. Presently as at May 2018 the US dollar is #361 to one US dollar. The effect of this on the economy called for investigation. Time series data were sought on CBN Statistical Bulletin Edition, world Development Indicators (WDI) and economic and financial books of vital importance. It is therefore concluded based in the findings of this study that external debt of Nigeria has only a short run positive effect on some aspects of the economy and an in significant negative effect the entire economy. Government needs to be more transparent and committed to the course of the masses by putting borrowed money into highly productive sectors that will improve the productive capacity of the economy or else government should find other sources of financing their budget deficit other than through public debt Based on key findings of this study, the study recommends that the Nigeria Debt Management Office should lay down healthy guideline for public loans, outlining the purpose, time frame, moratorium necessities and commitments, negotiation fees, and so forth as well as the conditions in which the administration can admit and guarantee loans particularly for external debt. In addition, new and superior technique to assign fixed interest payment and unstable amortization systems must be employed. However, new and modern economic policies that will save the country from total collapse economically should also be employed.
Public debt, Balance of Payment, Central Bank Of Nigeria, Commercial Banks, Debt Servicing , Debtor country, Deficit expenditure, Exchange rate, Private Sector, Public Sector, Economic growth and development, Gross domestic product, Monetary value, Multi-national financial institution, International Bank for Reconstruction and Development, International Monetary Fund, Cancellation of debt, Reschedulement of foreign debt