The effects of debt burden on the Nigerian economy

Ogege, Samson; Ekpudu, JE

doi:10.4314/jorind.v8i2.66829

Cited by 18 publications

(17 citation statements)

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“…In the early years of her independence, Nigeria's foreign debt management is a crucial macroeconomic issue, particularly when it comes to their debt (Ogege & Ekpudu, 2010). Even though the government has attempted to keep and lower the country's debt on several occasions, it is still increasing.…”

Section: Introductionmentioning

confidence: 99%

Impact of External Debt Management on Economic Growth of Nigeria

Ogbonna

Ihemeje

Obioma

et al. 2021

JLB

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This study examined the impact of External debt management on economic growth of Nigeria. Using annual time series data collected over the period of 33 years (1986 – 2018). The data for the study were collected from the CBN statistical bulletin annual report. The variables on which data are collected include: Real Gross Domestic Product, External Debt, External Debt service, Balance of Payment and Exchange Rate. Data were analyzed using the Ordinary least squares (OLS) multiple regression analysis. It proceeded with Descriptive statistics; Augmented Dickey Fuller (ADF) unit root test, Co-integration test and Auto-Regressive Distributed Lag (ARDL). The study revealed that impact of external debt management on economic growth of Nigeria over the period under review was statistically significant with external debt, external debt service payment and balance of payment but statistically insignificant with exchange rate. The study recommended that governments should establish and adopt an optimal balance between external debt acquisition and application /allocation of the acquired funds to productive projects for the purpose of making a high output and a steady economic growth. The management should live up to expectation by encouraging efficient commitment of borrowed funds to productive projects so as to comply with debt serving agreement and outright payments, measures such as improving exports should be implemented to ensure that local currencies are stable.

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Section: Introductionmentioning

confidence: 99%

Impact of External Debt Management on Economic Growth of Nigeria

Ogbonna

Ihemeje

Obioma

et al. 2021

JLB

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“…In Nigeria, Ogege and Ekpudu (2010), employs the OLS to test the relationship between debt burden and the growth of the Nigerian economy, and came up with the results that indicates that there is a negative relationship between debt stock and gross domestic products. Here, the focus of the study is on gross domestic product, rather than exchange rate which is the interest of the current study.…”

Section: Emperical Literaturementioning

confidence: 99%

Impact of Public External Debt on Exchange Rate in Nigeria

Saheed¹,

Sani²,

Idakwoji³

2015

IFB

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With continuous increase in public expenditures, and low capital formation in many developing countries, many governments have resorted into borrowing either or both within and outside the country. However, most borrowings come with interest attached, which results in debt servicing. Serving external debt may involve demand for foreign currency which tends to affect the exchange rate of the country. Hence, this study examines the impact of public external debt on exchange rate in Nigeria. Using the Ordinary Least Square, on the secondary data sourced from the CBN and DMO among other sources, findings reveals that all the dependent variables, that is, external debt, debt service payment and foreign reserve proved to be statistically significant in explaining exchange rate fluctuation in Nigeria within the period of observation, with debt service payment having the strongest effect (Coeff: ISSN 2374-2089 2015 0.4443). Based on the finding, the study recommends that government should ensure that all public borrowing, where and when necessary, be directed towards productive economic activities which can generate returns to service and pay up the debt at maturity.International Finance and Banking

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“…This section provides the account of relevant past studies about the relationship between external debt and exchange rate fluctuations. Ogege and Ekpudu (2010) utilized the OLS technique in examining the impact of debt burden on economic growth in Nigeria. The results of the study show that debt stock had a negative impact on the economic growth of the country.…”

Section: Empirical Literature Reviewmentioning

confidence: 99%

Investigating External Debt and Exchange Rate Fluctuations in Nigeria: Any Difference with ARDL Model?

Aderemi

Fagbola

Sokunbi³

et al. 2020

Studia Universitatis Babes-Bolyai Oeconomica

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One of the contending issues in Nigeria in the recent time is external debt and exchange rate fluctuations. In view of the above, this study examined the relationship between external debt and exchange rate fluctuations in Nigeria over the period of 1981 to 2018. Consequently, the study employed Autoregressive Distribution Lag Model to address the objective of the study. The major findings that originated in this paper are as follows: external debt, debt service payment and foreign reserve have a significant positive impact on exchange rate fluctuations in the short run in Nigeria. Furthermore, based on these findings, recommendations are made for the policy makers that external debt as a means of financing budget deficit should be minimized if not totally discouraged in Nigeria because its servicing in particular and repayment put pressure on foreign exchange market in the short run and thereby leads to exchange rate fluctuations in terms of depreciation of naira in the country. Also, country’s foreign reserve should be strengthened through the implementation of aggressive export promotion policy in Nigeria.

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The effects of debt burden on the Nigerian economy

Cited by 18 publications

References 0 publications

Impact of External Debt Management on Economic Growth of Nigeria

Impact of External Debt Management on Economic Growth of Nigeria

Impact of Public External Debt on Exchange Rate in Nigeria

Investigating External Debt and Exchange Rate Fluctuations in Nigeria: Any Difference with ARDL Model?

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