Analysis of the Nigeria’s Recent Public Debt Portfolio and Its Implications to the Economy

Adamu A, Mustapha AB, Abdullahi MI and Nur BS

Published on: 2024-06-24

Abstract

This paper analysed the recent public debt portfolio of Nigeria and its potential implications on the economy. The study employed exploratory research method that focuses on conceptual literature as well as a review of theories and studies in respect to causes and consequences of public debt in Nigeria. It began by analyzing the factors contributing to the accumulation of public debt, including fiscal mismanagement, over-reliance on oil revenue, and ineffective debt management strategies. The consequences of this debt burden are then explored, ranging from reduced government spending on essential services to increased vulnerability to external shocks. Subsequently, the paper presented the analysis of Nigeria’s public debt profiles of the fiscal years 2022 and 2023 based on the sources, burden, servicing and implications to the economy. Additionally, the paper proffered potential solutions to address the debt crisis, such as fiscal reforms, diversification of the economy, and enhanced transparency and accountability in public financial management. Ultimately, understanding the root causes and potential ramifications of Nigeria's public debt crisis is essential for policymakers to formulate effective strategies for sustainable economic development.