THE IMPACT OF EXTERNAL DEBT MANAGEMENT ON THE NIGERIA ECONOMY

THE IMPACT OF EXTERNAL DEBT MANAGEMENT ON THE NIGERIA ECONOMY
Abstract
Nigeria’s external debt, including its size, structure, source, type, and composition. The work analyzes the indexes for measuring the debt burden and examines alternative debt scenarios. It distinguishes between the internal and external factors influencing external debt accumulation, identifies the changes in the international environment necessary to alleviate the debt burden, and examines the relationship between export performance and the debt burden. After reviewing the structure of the Nigerian economy and its political history, the work concludes that Nigeria’s debt crisis is the result of structural defects inherent in the economy since independence. The work finds that the indicators of the debt burden have been relatively high. The behavior of these indicators, under varying assumptions, is explored using a growth-cum-debt model. The external and internal causes of debt accumulation are tested econometrically, and the results show the most important variables to be the real effective exchange rate and the terms of trade. The work ends with some policy prescriptions for dealing with the debt crisis.
TABLE OF CONTETNS
TITLE i
CERTIFICATION ii
DEDICATION iii
ACKNOWLEDGEMENT iv
ABSTRACT v
TABLE OF CONTENTS vi
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study 1
1.2 Statement of Problem 3
1.3 Research Questions 5
1.4 Objectives of the Study 5
1.5 Research Hypotheses 6
1.6 Significance of the Study 6
1.7 Limitations of the Study 7
1.8 Definition of the Terms 8
References 10
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 Review of Nigeria’s Foreign Debt 11
2.1.1 Definitions of Foreign Debt 15
2.2 Concept of Foreign Debt 16
2.3 Genesis and Structure of Nigerian External Debt 17
2.4Factors that Contribute to Nigeria’s External Debt 20
2.5Economic Growth and External Debt: Empirical Review 24
2.6Sources of Public Borrowing 26
2.7Approach to Solving Nigeria’s External Debt Problems 28
2.8Debt Reduction Operations and Nigeria Foreign
Debt Experience 32
2.9Future Voluntary Debt Reduction Operations and
Management 44
2.10 Government Creditors and the Paris Club 50
2.11Types of External Debt Financing 56
2.12Importance of Debt Management on the Economy 61
2.13Objectives of Debt Management 63
References 67
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.1 Research Design 70
3.2 Sources of Data 70
3.3 Population and Sample Size 71
3.4 Techniques of Data Collections 71
3.5Data Analysis Techniques 71
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1 Introduction 73
4.2 Presentation of Data 73
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1Summary of Findings 79
5.2 Conclusion 80
5.3 Recommendations 82
BIBLIOGRAPHY 83
APPENDIX 87