Public Debt Crisis in Nigeria: Causes and Consequences

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.

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