Tag Archives: External Debt

The Nigeria Debt Structure and Its Effects on Economic Performance (Published)

The aim of this study is to verify the empirical relationship between the structure of Nigeria public debts and the nation’s economic performance over the period 1990-2015. The study employ relevant data from CBN statistical bulletin of various issues and the analysis are based on two regression techniques simple and multiple. The simple regression result indicates significant positive relationship at 0.05 level between aggregate public debt and Nigeria GDP. Multiple regression analysis indicate that while the multiple correlation coefficient is significant at 0.05 level, external debt in negatively signed while domestic debt signs positively with Nigeria’s GDP. The regression coefficients are all significant at 0.05 levels with a coefficient of determination (R2) value of 94.5 percent. Given the result, the study concludes that Nigeria public debts are valuable in predicting partially variations in Nigeria’s economic performance. It recommends that Nigeria should emphasis more of domestic debts in place of external debts. This should be done through development of new and varied money and capital markets products as well as enhanced internationalization of the operations of the Nigeria’s capital and money markets. It also recommended that development of indigenous technological potential be given priority to boost Nigeria technology and eventually economic independence.

Keywords: Domestic debt, External Debt, debt structure and economic performance

External Debt and Economic Growth: The Nigeria Experience (Published)

This research work was aimed at ascertaining the impact of external debt on economic growth in Nigeria. Ex-post facto research design was adopted for the study. While data on Gross Domestic Product (GDP), External Debt Stock and External Debt Service Payment were obtained from World Bank International Debt Statistics, Exchange Rate data were collected from Central Bank of Nigeria Statistical Bulletin, 2013. The period of study was 1980-2013. Model was formulated and data were analyzed using Ordinary Least Square. Diagnostic tests were conducted using Augmented Dick Fuller Unit Root Test, Co-integration and Error Correction Model. The independent variable was GDP, while the explanatory variables were External Debt Stock, External Debt Service Payment and Exchange Rate. We discovered that External Debt had a positive relationship with Gross Domestic Product at short run, but a negative relationship at long run. Also, while External Debt Service Payment had negative relationship with Gross Domestic Product, Exchange Rate had a positive relationship with it. The paper concluded that exchange rate fluctuation had positive impact on the Nigerian economy while external debt stock and debt service payment had negative impact on the same economy. The study recommended amongst others, that Debt Management Office should set mechanism in motion to ensure that loans were utilized for purposes for which they were acquired as well as set a ceiling for borrowing for states and federal governments based on well-defined criteria.

Keywords: Debt Stock, Exchange Rate, External Debt, External Debt Service Payment, Gross Domestic Product

EXTERNAL DEBT ACCUMULATIONS AND MANAGEMENT IN DEVELOPING ECONOMIES: A COMPARATIVE STUDY OF SELECTED SUB-SAHARAN AFRICAN AND LATIN AMERICAN COUNTRIES. (Published)

The issue of debt crisis and management have constituted major challenges to the developing economies of the world. This study examined external debt accumulations and management strategies adopted by developing countries using Nigeria, Ghana and Brazil. The study covers a ten year period, 2002-2011. This work is both conceptual and empirical. Data were gathered through of the documentations/releases of relevant agencies such as the Debt Management Offices and Central Banks of the countries studied. The study attributed the debt crisis in these nations primarily to mismanagement of credit facilities, weak economic base, overdependence on foreign aids, weak debts contractual agreements and ineffective debt managements strategies. The paper recommends among other things that developing economies should place less emphasis on external borrowings as most of the credits are given under very harsh conditions, emphasis should be placed on prudent resource management. The government should rather pursue deliberate policies that will ensure the diversification of their economy by developing other productive sectors of the economies, while external debts should be seen as a last resort and must be contracted to finance only self- sustaining projects that will stimulate real sector and other factors of production needed to guarantee enduring economic development.

Keywords: Debt Crisis, Debt Management Strategies, Developing Economies, External Debt

EXTERNAL DEBT ACCUMULATIONS AND MANAGEMENT IN DEVELOPING ECONOMIES- A COMPARATIVE STUDY OF SELECTED SUB-SAHARAN AFRICA AND LATIN AMERICA COUNTRIES. (Published)

The issue of debt crisis and management have constituted major challenges to the developing economies of the world. This paper has x-rayed issues of external debt accumulations and management strategies adopted by developing countries using Nigeria, Ghana and Brazil economies. The study covers 2002-2011 and reviews the issues that led to the debt accumulations countries and how they have managed the crisis via policy formulation and implementations. This work is both conceptual and empirical. Data were gathered through of the economic statistics releases of relevant agencies and reveiw records sourced via the internet and other scholarly publications relevant to the topic. The study attributed the debt crisis in these nations primarily to mismanagement of credit facilities, weak economic base, overdependence on foreign aids, weak debts contractual agreements and ineffective debt managements strategies. The paper recommends among other things that developing economies should place less emphasis on external borrowings as most of the credits are given under very harsh conditions, emphasis should be placed on prudent resource management. The government should rather pursue deliberate policies that will ensure the diversification of their economy by developing other productive sectors of the economies, while external debts should be seen as a last resort and must be contracted to finance only self- sustaining projects that will stimulate real sector and other factors of production needed to guarantee enduring economic development.

Keywords: Debt Crisis, Debt Management Strategies, Developing Economies, External Debt