Nigeria‟s Public External Debt and Economic Growth: Reconsidering the Empirics

Inyang, Nora Francis; Effiong, Ubong Edem

doi:10.31871/wjir.9.3.28

Cited by 2 publications

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“…According to other research, the government at all levels needs to maintain stringent loan monitoring in addition to ensuring that the debts being incurred are correctly directed toward capital expenditures (Vincent et al, 2021). Loans must also be limited, and corruption must be fought everywhere (Inyang & Effiong, 2020). The results of this study pointed out to decision-makers how critical it is to keep the level of foreign debt as low as feasible.…”

Section: Nigerian Debt Management Issuesmentioning

confidence: 88%

Role of Islamic Law in the Efficient Management of Debt in Nigeria

Zubair,

Muhammed-Mikaaeel

2023

JHN

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Introduction toThe Problem: Nigeria's Q4 2021 Real GDP reached N20.33 trillion, with a 3.98% YoY growth, marking the fifth consecutive quarter of positive growth post-2020 recession. Despite this, the economy is deemed in crisis. Concerningly, the government is accumulating more debt to service existing obligations, posing sustainability issues and conflicting with Shari'ah wealth management principles. Purpose: This study aims to analyze the impact of Islamic law on effective debt management in Nigeria, specifically addressing the consequences of economic crises that result in substantial national borrowing. Additionally, it aims to highlight Sharia jurisprudence as a viable solution to alleviate Nigeria's economic challenges. Design/Methodology/Approach: The Methodology employed in this study is purely doctrinal method of legal research. Hence, the study places reliance principally on the available literature by which the study explores relevant materials such as text books, journals and internet facilities. Importantly, the study finds most useful the primary sources of Shari'ah which are the Qur'an and Sunnah as well as the secondary sources which include Qiyas and Ijma'. Findings: The study finds that the economic crisis which Nigeria has found itself as a result of the multiplier effect of excessive public borrowing cannot be divorced from the adoption of the conventional economic system. The result reveals further that Islamic law plays significant roles in the efficient management of debt as was confirmed in the Malaysian Shari'ah compliant public debt management practices. The study proposes, by way of recommendation, the practice of Islamic Wealth Management to cushion the effect of the deficit budgets and the onerous debts on Nigeria and increase investment activities with a view to impacting positively on the country's GDP. The study is therefore most relevant to the policymakers in the Ministry of Finance, Debt Management Office, as well as the Lawmakers in the country.

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Section: Nigerian Debt Management Issuesmentioning

confidence: 88%

Role of Islamic Law in the Efficient Management of Debt in Nigeria

Zubair,

Muhammed-Mikaaeel

2023

JHN

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“…The Debt Management Office of Nigeria (DMO, 2012) highlighted the factors that led to Nigeria's external debt burden to include inefficient trade and exchange rate policies, adverse exchange rate movements, adverse interest rate movements, poor lending and improper debt management techniques, ineffective loan use, and amassing of late fees. The effect of external debt on a nation's economy has been a subject of controversy among academics; who are mostly of the view that external debt accelerates economic growth (Inyang & Effiong, 2020). Agriculture also includes all forms of production, such as gardening, livestock raising, fishery, forestry, etc.…”

Section: Review Of Related Literature Conceptual Reviewmentioning

confidence: 99%

“…Recently, Inyang and Effiong (2020) in their study investigated the possible influence which external debt can have on the growth of the Nigerian economy using annual data for the period 1981 to 2019. The study used the ARDL Bounds test approach to cointegration and the error correction model.…”

Section: Empirical Reviewmentioning

confidence: 99%

External Debt and Agricultural Production in Nigeria

OSUJI¹,

EHRIJAKPOR²,

MGBEZE³

2023

Financ. account. res. j.

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The motivation for this paper stems from the rising debt profile of Nigeria, especially the foreign component, and its implication on growth prospects. In that regards, the study sought to establish the linkages between external debt and growth in productivity, specifically focusing on the agricultural sector. The study thus analyzed the relationship between external debt and Nigeria's agricultural production from 2006 to 2021 using secondary data obtained from the Central Bank of Nigeria (CBN) statistical bulletin and the World Development Indicators (WDI). ADF unit root test and the (ARDL) bound testing approach to cointegration were utilized, to achieve the objectives of the study. The parameters displayed a long-term association in both the short and long - run, according to empirical results, which demonstrated that the variables were cointegrated. External debt stock (EDS) and agricultural production, as assessed by agriculture gross domestic product (AGDP), had a substantial positive association, indicating that EDS positively impacted agricultural growth and that higher EDS accelerated agricultural growth over time. To be precise, a rise in EDS of 1% produced an increase in AGDP of 0.14%. Euro bond stock and bilateral loans also revealed positive relationships while External Debt Service Payment and Multilateral loans revealed negative relationships with AGDP. According to this research, the government must consider the strategy of diversifying its economy via agricultural output seriously. To lessen the cost and unfavorable effects of an excessive reliance on foreign exchange from oil and its price volatility, it is necessary to diversify the sources of external debt servicing, particularly in the non-oil sector including agriculture, mining, industry, and industrial production. Keywords: Debt, Agriculture, Loans, Output, Nigeria.

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Nigeria‟s Public External Debt and Economic Growth: Reconsidering the Empirics

Cited by 2 publications

References 0 publications

Role of Islamic Law in the Efficient Management of Debt in Nigeria

Role of Islamic Law in the Efficient Management of Debt in Nigeria

External Debt and Agricultural Production in Nigeria

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