Submit your papersSubmit Now
For Enquiries: [email protected]
IIARD LogoIIARD

Effect of Public Debt on Economic Growth in Nigeria

Ejinkonye, Remigius Chinwoke (PhD), Madubuike Kenneth O. (PhD), Adiga, Dauda Leviticus (PhD), Mazeli, Edith Nkiruka (PhD)

Abstract

This study assessed the effect of public debt on Nigeria’s economic growth. Background: Public debt denotes the liabilities incurred by the government through the process of borrowing, which could be domestic or external borrowing. It is pertinent to note that government debt burden is basically caused by her inadequate revenue or budget deficit. It is obvious that the poor management of borrowed funds and their inadequate application in the productive sectors of the economy has contributed to the sorry state of the Nigerian economy and our poor GDP. Hence, the economy is unable to guarantee the generation of future and increased revenue from which such debt can be repaid. Aims: The specific objectives were to assess the effect of domestic debt and external debt on gross domestic product in Nigeria. Methods: The data for the period 1981 to 2023 was obtained from CBN bulletin 2023, while ex-post facto research design was adopted. The data was analyzed using descriptive statistics and multiple regression. The independent variables

Keywords

Domestic debtExternal debtbudget deficiteconomic growth.

References

Abdulmunim, B. A. (2022). Effect of public debt on economic growth in Nigeria. Malete Journal of Accounting and Finance, 3(1), 18-31. Agboola, M. O., Bekun, F. V., Osundina, O. A., & Kirikkaleli, D. (2020). Revisiting the economic growth and agriculture nexus in Nigeria: Evidence from asymmetric co-integration and frequency domain causality approaches. Journal of Public Affairs. https://doi.org/10.1002/pa.2271. 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. Alagba, O. S., & Idowu, E, I. (2019). Effect of public debt on economic growth in Nigeria: An empirical analysis 1981-2018.international Journal of Business and Economic Development, 7(2), 10-17. CBN (2023). Central Bank of Nigeria Statistical Bulletin. www.cenbank.org. Danlami, A. F. & Teilla, O. (2019). Introduction to public Finance in Nigeria 1st ed. Lagos Macdra publishers Ltd. Efuntade, A. O., Adegboyo, O., & Olubunmi, E. O. (2020). The impact of external debt on economic growth in Nigeria. International Journal of Scientific and Research Publications, 10(4), 716-721. DOI:10.29322/IJSRP.10.04.2020.P10077. Eke, C. K., & Akujuobi, N. E. (2021). Public debt and economic growth in Nigeria. International Journal of Development and Management Review, 16(1), 178-192. Ekesiobi, C., & Dimnwobi, S. K. (2020). Economic assessment of the Igbo entrepreneurship model for entrepreneurial development in Nigeria: Evidence from clusters in Anambra state. International Journal of Entrepreneurial Behavior & Research, 27(2), 416-433. Ekperiware, M. C., Akinrinola, O. O., Ademiju, A., Ejima, S. I., & Ogbogbo, O. G. (2022). Caleb Journal of Social and Management Sciences, 7(1), 30.53. Ikwuo, A. K., Josiah, F. O., Abagha, J. U., Egwu, E. O., & Nkwagu, L. C. (2024). Public debt and economic growth in Nigeria. IOSR Journal of Humanities and Social Sciences, 29(4), 50- DOI:10.9790/0837-2904025057. Johnny, N., & Johnnywalker, W. (2018). The Relationship between external reserves and economic growth in Nigeria (1980-2016). International Journal of Economics, Commerce and Management, 6(50), 213–241. Joy, J., & Panda, P. K. (2020). Pattern of public debt and debt overhang among BRICS nations: An empirical analysis. Journal of Financial Economic Policy, 12(3), 345– 363. https://doi.org/10.1108/JFEP-01-2019-0021. Nwokoye, E. S., Igbanugo, C. I., & Dimnwobi, S. K. (2020). International migrant remittances and labour force participation in Nigeria. African Development Review, 32(2), 125-137. https://doi.org/10.1111/1467-8268.12421. Nymphas, V. A., Emmanuel, A. A., & Auta, D. K. (2023). Impact of public debt on economic growth in Nigeria. International Journal of Management, Social Sciences, Peace and Conflict Studies, 6(2), 431-444. Onuoha, F. C., Dimnwobi, S. K., Okere, K. I., & Ekesiobi, C. (2023). Funding the green transition: Governance quality, public debt, and renewable energy consumption in Sub- Saharan Africa. Utilities Policy, 82, 101574. https://doi.org/10.1016/j.jup.2023.101574. Onyenwife, K. C., Ezeanyeji, C. I., & Ekesiobi, C. (2023). Public debt and economic growth in Nigeria: A consideration of new evidence. Timisoara Journal of Economics and Business, 16(1), 1-21. Saka, K. O. (2021). Impact of public debt on economic growth in Nigeria. An unpublished degree project, University of Ilorin. Vincent, W. K. (2018). Debt servicing vs debt overhang. Journal of Development and Entrepreneurship Studies, 1(1), 41-53. World Bank. (2019). The World Bank in Nigeria. World Bank Publication. Retrieved from https://www.worldbank.org/en/country/nigeria/overview. Yusuf, A., & Mohd, S. (2021). The impact of government debt on economic growth in Nigeria. Cogent Economics & Finance, 9(1), 1-19. DOI:10.1080/23322039.2021.1946249.

More Articles from INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCIAL MANAGEMENT

Bridging Legal, Financial, and Data Governance in Enterprise AI: Emerging Trends

Author: Funmilayo Ashore-Onisemo, Ebehiremen Faith Iziduh, Uchechi Mary-Linda Unamma, Ifeanyichukwu Jeffrey Okwesa

Macroeconomic Policies and Economic Stability in Nigeria

Author: Abel-Tariah Emmanuel Onate, Okon, Ekanem Nsikhe, Nwenyi Francis Onwe

Determinants of Bank Liquidity in Nigeria

Author: Nelson Johnny Ebifemo-ere Stephen