IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF SOCIAL SCIENCES AND MANAGEMENT RESEARCH (IJSSMR )

E-ISSN 2545-5303
P-ISSN 2695-2203
VOL. 10 NO. 4 2024
DOI: https://doi.org/10.56201/ijssmr.v10.no4.2024.pg166.174

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Public Debt Crisis in Nigeria: Causes and Consequences

Okonkwo N. Osmond, Akamike Joseph Okechukwu

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Abstract

Nigeria's public debt crisis has been caused and exacerbated by a range of factors, including fiscal mismanagement, overreliance on external borrowing, weak revenue generation, and inefficiencies in public spending. Corruption, political instability, and economic vulnerabilities exacerbate the situation, leading to a cycle of debt accumulation. There are significant consequences, including macroeconomic instability, increased debt servicing burdens, reduced fiscal space for social spending, and vulnerability to external shocks. A comprehensive approach was proposed to address this crisis, focusing on fiscal discipline, revenue mobilization, prudent debt management, structural reforms, and anti-corruption efforts. Collaboration among policymakers, stakeholders, and international partners is crucial to fostering transparency, accountability, and sustained economic growth.

keywords:

Public Debt, Debt Overhang, Debt Servicing, Fiscal Policy, Revenue Mobilization, Debt Sustainability, Budget Deficit, Debt-to-GDP Ratio, Inflation, Investment,

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References:

Akhanolu, I. A., Babajide, A. A., Akinjare, V., Oladeji, T., & Osuma, G. (2018). The effect of
public debt on economic growth in Nigeria: An empirical investigation. International
Business Management, 436-441.

Ajayi, I. E., & Edewusi, D. G. (2020). Effect of public debt on economic growth of Nigeria:
An empirical investigation. International Journal of Business and Management Review,
8(1), 18-38.

Ehiedu, C. V., Odita, O. A., & Kifordu, A. A. (2020). Financial integration and growth
volatility nexus: The Nigeria experience. Webology, 17(2), 404-415.

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