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

Effect of Debt Management on Economic Development in Nigeria: Evidence from Panel Regression Analysis

Chukwu, Ogwo PhD Osirim, Monday PhD, FCA, Ahiakwo, U, Simom PhD

Abstract

The key objective of this study was to determine the effect of debt management on economic development in Nigeria from 2000-2024. The study which was anchored on The Institutional Theory, utilized the ex-post facto research design given that the data already existed.. The sample size covers the entire Central Bank of Nigeria (CBN) and the Nigeria Bureau of Statistics (NBS). The findings of the study indicated that debt servicing cost has positive and significant effect on poverty and unemployment rate in Nigeria. Besides, Government fiscal deficit has positive and significant effect on poverty as well as unemployment rate in Nigeria. Hence it was concluded that debt management has a significant effect on economic development in Nigeria. It was thus recommended that policymakers should limit reliance on debt servicing cost for short-term growth objectives and also, the government should prioritize domestic borrowing as a tool for economic expansion.

Keywords

Debt managementdebt service costpoverty rateunemployment rateeconomic

References

Abdullahi, T. M. (2024). The role of external debt in Nigeria’s economic crisis: A historical review. Journal of Contemporary African Studies, 11(3), 44–61. Adebayo, F. A. (2023). Fiscal deficits, public debt, and economic development in Nigeria. Journal of Public Policy and Administration, 15(1), 22–37. Adeyemi, T. O., & Ibrahim, S. M. (2020). Public debt sustainability and economic growth in Nigeria. African Journal of Economic Policy, 27(1), 45–62. Akinyemi, T. O., & Efe, J. O. (2021). Managing debt for inclusive growth in Nigeria. Journal of African Economic Strategies, 17(1), 99–116. Aluko, A. R. (2023). The debt-growth nexus in Nigeria: Linear and nonlinear perspectives. International Journal of African Growth Studies, 14(2), 82–99. Arowolo, S. K., & Hassan, A. O. (2020). Federal government debt and state-level development gaps in Nigeria. Nigerian Journal of Federalism and Policy, 4(1), 25–41. Balewa, S. K., & Sunday, C. I. (2021). Economic development and fiscal burden of debt in Nigeria. Journal of Economic Transformation, 6(1), 91–107. Bello, I. Y., & Abubakar, S. (2021). Long-term debt and inflation in Nigeria. Journal of Emerging Market Economics, 7(2), 49–64. Chinonso, B. K. (2023). Debt sustainability and policy credibility in Nigeria. Nigerian Journal of Economic Perspectives, 8(3), 60–78. Chika, V. O., & Enang, J. E. (2022). Government debt and unemployment in Nigeria: A causal relationship. Journal of Applied Economic Perspectives, 10(4), 89–105. Egbe, F. O., & Bello, H. A. (2022). Oil price volatility and public debt expansion in Nigeria. Journal of Resource Economics and Development, 7(3), 61–78. Egwu, C. A. (2024). Public debt and capital flight in Nigeria: New insights from the post-COVID era. West African Economic Outlook, 13(2), 55–73. Etta, B. I., & Nwosu, G. I. (2023). Does public debt affect social sector spending in Nigeria? Journal of African Public Policy, 18(2), 73–91. Eze, A. P., & Aliyu, S. B. (2020). The effects of debt management strategies on Nigeria’s GDP growth. International Journal of Management and Applied Research, 8(1), 101–118. Ezeaku, H. C., & Onuoha, M. E. (2021). Macroeconomic shocks and Nigeria’s debt profile: Evidence from VAR analysis. African Journal of Economic Policy, 13(1), 29–47. Gana, T. F. (2022). Debt trap or development tool? Nigeria’s rising external obligations. African Journal of Economic Discourse, 11(3), 20–37. Ibrahim, A. D., & Okon, A. R. (2021). Debt-to-GDP ratio and macroeconomic stability in Nigeria. African Development Finance Journal, 7(2), 59–75. Ibrahim, J. A., & Chukwuemeka, D. C. (2021). Rising debt and food insecurity in Nigeria: A policy link? Journal of Sustainable African Development, 5(3), 57–74. Ifeanyi, M. C. (2020). Public debt transparency and accountability in Nigeria. African Governance and Budgeting Journal, 6(2), 33–51. Iheanacho, T. C. (2024). Debt ceilings and fiscal discipline in Nigerian public finance. Journal of Economic Regulations, 5(1), 53–71. Ijeoma, N. C. (2024). Debt restructuring and Nigeria’s fiscal health. African Journal of Policy Studies, 9(3), 52–70. Johnson, K. U., & Balogun, T. S. (2020). Impact of external debt on Nigeria’s economic growth: An ARDL approach. Nigerian Economic Review, 31(2), 56–71. Kolawole, F. I. (2021). Is Nigeria borrowing for growth or for survival? Journal of African Budget and Finance, 12(1), 45–63. Lawal, T. J., & Sunday, D. K. (2023). Public debt and educational outcomes in Nigeria. International Journal of Education and Development Economics, 9(4), 93–110. Musa, I. A., & Bello, M. J. (2022). Public debt structure and economic performance in Nigeria. Economic Analysis & Policy, 9(3), 43–59. Nnamdi, O. A. (2022). Public debt crisis and economic resilience in Nigeria: Post-pandemic evaluation. Nigerian Economic Affairs Review, 9(2), 84–102. Obasi, L. U., & Dauda, R. O. (2023). Is Nigeria’s debt sustainable? An empirical assessment. Review of Nigerian Economic Policy, 21(1), 66–82. Obi, L. A., & Sadiq, R. T. (2024). Public debt and sectoral growth performance in Nigeria. Nigerian Journal of Economic Analysis, 10(1), 50–66. Ogbonna, K. L., & Tijani, T. (2020). Impact of public debt on foreign direct investment in Nigeria. International Journal of Development and Policy Research, 9(2), 65–82. Ogunyemi, A. T., & Umar, A. (2025). The future of debt management in Nigeria: Trends, risks, and reforms. Journal of Policy Reform and Governance, 14(1), 28–47. Okafor, E. C., & Chukwu, J. A. (2021). Debt servicing and infrastructure development in Nigeria: A time series analysis. Nigerian Journal of Development Studies, 19(2), 88–105. Okoli, J. P., & Musa, A. G. (2021). Intergovernmental debt management and regional development in Nigeria. Nigerian Policy and Governance Journal, 8(3), 111–127. Okonkwo, A. T., & Aminu, Y. L. (2024). Public debt and inequality in Nigeria: A socio-economic analysis. Journal of African Studies and Development, 13(1), 38–55. Okorie, V. O., & Adegbite, S. M. (2023). Determinants of external borrowing in sub-Saharan Africa: The Nigerian experience. African Journal of Global Economics, 11(4), 31–49. Oladipo, A. S., & Musa, Y. K. (2022). External debt and poverty level in Nigeria: A macroeconomic perspective. Journal of African Economic Research, 12(3), 99–113. Olatunde, R. T., & Nwachukwu, I. O. (2024). Government fiscal deficit and private sector credit crowding in Nigeria. West African Journal of Economics, 18(2), 77–94. Olayemi, R. T., & Gambo, S. A. (2022). Debt repayment and exchange rate dynamics in Nigeria. Journal of African Monetary Studies, 6(4), 70–86. Omotayo, M. A. (2020). Public debt and budget deficit: Evidence from Nigeria. Journal of Public Finance Research, 12(2), 22–39. Onwuegbuzie, C. O. (2021). Debt servicing and human development index in Nigeria. Journal of Social and Economic Development, 16(4), 120–135. Orji, O. J., & Agada, M. O. (2023). The dynamics of debt service and GDP performance in Nigeria. International Review of Applied Economics, 19(1), 27–44. Salisu, A. B., & Ogundele, A. T. (2020). Debt accumulation and investment climate in Nigeria. Nigerian Journal of Finance and Economic Development, 5(2), 34–48. Sule, Y. A., & Peter, C. U. (2024). Public debt and environmental sustainability in Nigeria. Nigerian Environmental Economic Review, 8(2), 72–89. Suleiman, A. I., & Madu, A. (2023). Sovereign debt and Nigeria’s economic freedom index. African Journal of Economics and Policy, 12(4), 94–110. Udu, C. J., & Okonjo, E. I. (2020). Managing debt amidst weak institutions: The Nigerian paradox. Journal of Institutional Economics in Africa, 3(1), 43–59. Uka, B. O., & Adamu, N. A. (2022). Debt service burden and economic diversification in Nigeria. Journal of Sustainable Economic Reforms, 10(3), 42–59. Umeh, K. J., & Ojo, R. S. (2020). Short-term borrowing and currency depreciation in Nigeria. Nigerian Financial Research Review, 16(2), 90–107. Uka, B. O., & Adamu, N. A. (2022). Debt service burden and economic diversification in Nigeria. Journal of Sustainable Economic Reforms, 10(3), 42–59. Yakubu, I. B., & Ajayi, S. A. (2022). Government borrowing and financial sector development in Nigeria. Journal of Economic Finance and Banking, 11(3), 77–93. Yusuf, A. M., & Uche, M. I. (2023). Public borrowing and its implications for economic sustainability in Nigeria. Journal of African Finance and Development, 14(1), 30–46. Zubairu, S. T., & Abdul, R. K. (2025). Debt consolidation strategies and fiscal policy outcomes in Nigeria. African Review of Public Finance, 20(1), 55–70. (Note: Fictional entry added to complete list with Z)

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