Assessment of the Impact of External Borrowing on the Economic Growth of the Developing Countries - Nigerian Experience

Akinwunmi, Adeboye Akanni; Adekoya, Rosemary Bukola

doi:10.20849/abr.v3i1.331

Cited by 14 publications

(12 citation statements)

References 3 publications

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“…Nigeria as a country is running on a budget deficit currently and the inability of Nigeria to accumulate domestic resources so as to fill the usual budget deficit experienced causes the consistent dependence on public debt especially foreign debt which is often typified by adverse lending conditions, instability of foreign exchange rates and the potential repudiation that occasions debt overhand, hence exerting negative effects on the economic growth of Nigeria (Akinwunmi and Adekoya, 2018).…”

Section: Background Of the Studymentioning

confidence: 99%

Nexus Between Public Debt and Nigeria Economy

Nonso,

Wisdom,

Chimarume

et al. 2023

IJSSTEM

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The research work evaluated the impact of public debt on Nigeria economy. The major problem that led to this study was how Nigeria has been borrowing continually without a corresponding increase in the Economic growth and development. Nigeria has been trapped in debt servicing that has taken a greater percentage in our National Budget. The specific objectives of this study are: To evaluate the effect of public debt on Nigeria economy growth. To ascertain the effect of domestic debt on Nigeria economy growth. To examine the effect of external debt on Nigeria economy growth. This research work was anchored on Richardo theory of public debt which suggests that to finance public expenditure appropriately, there must be an external source of fund. Being an ex post facto research design, data was collected from secondary source i.e world bank, ministry of finance, central bank of Nigeria statistical bulletin report. SPSS was used in running the analysis. The findings of this study are: Public debt has positive and significant relationship on Nigeria economy growth, Domestic debt has no significant impact on Nigeria economy growth, External debt does not have significant effect on Nigeria economy growth. The study recommended amongst others, that the government should look more better ways of generating funds apart from borrowing. In the aspect of domestic debt, that the government should make use of our local institutions more than meeting private individuals. In the aspect of external debt, that the government should reduce the way the source money externally because the duties of servicing debt is more tedious than the main loan itself.

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Section: Background Of the Studymentioning

confidence: 99%

Nexus Between Public Debt and Nigeria Economy

Nonso,

Wisdom,

Chimarume

et al. 2023

IJSSTEM

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“…According to Romanus (2014), it was expected that the debt relief is the most effective strategy for the country to recover from debt induced depression in order to resume sustainable growth that should engender the GDP. According to Akinwunmi and Adekoya (2018), the inability of Nigeria to accumulate domestic resources to bridge the abnormal budget deficit experienced in the country over the years propelled the consistent dependence on public debt especially foreign debt which is often typified by adverse lending conditions, instability of foreign exchange rates and the potential repudiation that occasions debt overhand, hence exerting negative effects on the economic growth of Nigeria.…”

Section: Gross Domestic Productmentioning

confidence: 99%

Debt Management and Gross Domestic Product: Lessons from the Nigerian Economy

Adebayo¹,

Tunji²,

Mojeed³

2021

theijbm

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The paper examined the fundamentals of debts accumulation and management in Nigerian economy and the extent to how itsignificantly influenced the Gross Domestic Product (GDP) to an appreciable level. The methodology was a time series data of the gross domestic product from 1990 to 2019 on one hand and debt growth from 1990 to 2019 on the other hand. Several literatures posited that Nigeria has always been at the mercy of externaland internal creditors via incessant loans accumulation and this in return consume a chunk of the expected revenue that is meant to implement the capital project aspect of the budget. The findings revealed that there is a negative relationship between debt accumulated overtime and the GDP in successive years, meaning that debt has always increased consistently within the years but GDP has not grown reasonably to justify the debt increase. The study concluded that now that government seems to have an unquenchable thirst for debt, it is expected that more efforts should be geared towards planning to manage our debts responsibly and efficiently to the good of all.The study finally recommended on the urgent need for the Nigerian economy to be diversified aggressively to other sources of revenue like solid minerals and agriculture since it is conspicuous from the study that most of the these critical sectors might not have felt the impact of the borrowed funds. It is also important that borrowed fund be used for the purpose they are meant so that by so doing the Gross Domestic Product (GDP) would be enhanced

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“…The inability of Nigeria to accumulate domestic resources so s to fill the usual budget deficit experienced in the country over the years occasioned the consistent dependence on public debt especially foreign debt which is often typified by adverse lending conditions, instability of foreign exchange rates and the potential repudiation that occasions debt overhand, hence exerting negative effects on the economic growth of Nigeria (Akinwunmi and Adekoya, 2018). This issue has also been ascertained to impede domestic capital creation thereby triggering the reduced provision of basic amenities for citizens in the country (Udoka et al, 2010).…”

Section: Statement Of the Problemmentioning

confidence: 99%

Effect of Public Debt on Economic Growth of Nigeria: An Empirical Investigation

2020

IJBMR

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This study examined the effect of public debt on economic growth of Nigeria. Specifically, the study determined the impact of domestic debt on the economic growth of Nigeria; assessed the effect of external debt on the economic growth of Nigeria and analyzed the relationship public debt and the economic growth of Nigeria. Secondary time series data spanning thirty-seven years (1982-2018) was gathered in the study. Data gathered in the study was estimated using descriptive statistics, unit root test, Johansen co-integration test and vector error correction model. Discoveries from the study suggests that external debt exerts a negative long run and short run effect on economic growth of Nigeria and domestic debt was ascertained to exert positive long run and short run effect on economic growth of Nigeria. Based on these findings, the study suggested that policy makers should integrate appropriate measures towards ensuring suitable management of domestic debts; government should ensure that contracted national debts are directed towards encouraging investment in the country and government through necessary monitoring committees should ensure that national debts are directed toward the provision of basic amenities and services required for the development of communities and societies of the nation.

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Assessment of the Impact of External Borrowing on the Economic Growth of the Developing Countries - Nigerian Experience

Cited by 14 publications

References 3 publications

Nexus Between Public Debt and Nigeria Economy

Nexus Between Public Debt and Nigeria Economy

Debt Management and Gross Domestic Product: Lessons from the Nigerian Economy

Effect of Public Debt on Economic Growth of Nigeria: An Empirical Investigation

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