Managing Public Debts and Stimulating Economic Growth: A Case Study of Nigeria's Fiscal Landscape

  • Funmilayo Bukola ALONGE
  • Anthony Buyide Afolalu
  • Niyi Oladipo OLANIYAN
Keywords: public debt, economic growth, fiscal landscape and stimulation of economic growth, external debt.

Abstract

This study examines the management of public debts and its impact on stimulating economic growth in Nigeria. The escalating burden of public debts at both federal and state levels has presented significant challenges to budget implementation and sustainable economic development. The research focuses on the trends of internally generated revenue (IGR), federal government statutory allocation (STA), external debt patterns, and aggregate budgeted expenditure (GEXP) in the country. The population of the study was made of all the thirty-six (36) of the Nigeria. The 36 states were divided untosix (6) geopolitical zones. Four states were selected from each geopolitical zones as the sample of the study. The study covered fourteen years between 2006 and 2020. Graph and descriptive statistics like mean, median, standard deviation, skewness were correlational analyse were employed to describe and analysis the data.Through a comprehensive analysis of data from various states and geopolitical zones, this study identifies the characteristics of Nigeria's public revenue and expenditure. The findings highlight the disparities in fiscal activities among the states, with Lagos emerging as the state with the largest internally generated income (IGR), external debts (EXTD), domestic debt, and aggregate budgeted expenditure (GEXP). Conversely, Ekiti and Taraba states display lower statutory allocation (STA) and internally generated revenue (IGR), leading to reduced aggregate budgeted expenditure. The study proposes recommendations for the Nigeria Debt Management Office to focus on policies related to external borrowings, promoting productive investments to improve internally generated revenue (IGR). Additionally, the Economic and Financial Crime Commission (EFCC) should prosecute criminals engaged in illicit borrowing of external debt to safeguard the country's financial stability.

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Published
2023-12-26