Domestic debt and the nigerian economy

Does the extra budgetary activities by the government attributes to the rise in domestic debt profile in Nigeria. The first, is for budget deficit financing, secondly, is for implementing monetary policy buying and selling of treasury bills in the open market operation and the third is to develop the financial instrument so as to deepen the financial markets.

The various coups and counter coups sincethe discontentment and politically motivated riots following the long-drawn and inconclusive political engineering of the Babaginda Military Administration, all combined to create an environment not conducive to foreign investment.

Nigeria Government Debt: Domestic

Labour force[ edit ] InNigeria had a labour force of 74 million. The empirical analysis of the impact of government domestic debt structure on the economy shall be restricted to the period between and It was discovered that despite the tax drive of the current government, it still heavily relied on external debts to fund its annual budget.

To find out if the extra budgetary activities by the government attributed to the rise in domestic debt profile in Nigeria. Although Nigeria must grapple with its decaying infrastructure and a poor regulatory environment, the country possesses many positive attributes for carefully targeted investment and will expand as both a regional and international market player.

This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH. The inability to solve this problem has created a gap which this research work intends fill.

State and local governments demanded access to this "windfall" revenue, creating a tug-of-war between the federal government, which sought to control spending, and state governments desiring augmented budgets, preventing the government from making provision for periods of lower oil prices.

But the decree or any exchange control policy that has the potential to discourage foreign investment will not be relevant under the present economic dispensations. In short, the statistical evidence strongly suggests that the causality runs from growth to debt, and not the reverse.

Debt has become inevitable phenomenon in Nigeria, despite its oil wealth. Does the increasing domestic debt profile affect the growth of Nigeria economy negatively? In recent years, Nigeria has expanded its trade relations with other developing countries such as India.

Inflation which had almost disappeared in April reached There are factors responsible for the rising domestic government debt profile in Nigeria 2.

Nigerian Public Debt – A Comparative Analysis

Apart from the fact that external debt has been badly expended in these countries, the management of debt by way of service payment, which is usually in foreign exchange, has also affected their macroeconomic performance Aluko and Arowolo, ; Serieux and Yiagadeesen What are the factors responsible for the rising domestic government debt profile in Nigeria?

External debt has a significant impact on the Nigeria economy growth. External debt has no causal relationship with Nigeria economic growth H0: There are no factors responsible for the rising domestic government debt profile in Nigeria. Generally, declines in government revenue were met by borrowing from the Central Bank through the instrument of ways and means advances.

The extra budgetary activities by the government are responsible to the rise in domestic debt profile in the Nigeria 1.Corresponding Author: I. Adofu, Department of Economics, Kogi State University, Anyigba, Nigeria 22 Domestic Debt and the Nigerian Economy I. Adofu and M. Abula Department of Economics, Kogi State University, Anyigba, Nigeria Abstract: The study investigates the empirical relationship between domestic debt and economic grow th in Nigeria.

1 1 Background and context The structure of the Nigerian economy is typical of an underdeveloped country. Over half of the gross domestic product (GDP) is accounted for by the primary sector with.

Nigeria: National debt from to * in relation to gross domestic product (GDP) This statistic shows the national debt of Nigeria from. Browse additional economic indicators and data sets, selected by Global Finance editors, to learn more about Nigeria economic outlook, debt to GDP ratio, international trade performance and population trends.

Rankings of Nigeria best banks and safest banks are also available. The International Monetary Fund in March identified the major problems of the Nigerian economy as huge fiscal deficit, low economy diversification, increasing domestic risks, and rising.

The Nigerian sovereign domestic debt management programme of reforms is aimed at developing for the country market-based issuance practices and trading mechanisms for government securities that.

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Domestic debt and the nigerian economy
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