Abstract: Public debts if secured and managed sustainably have been shown to boost economic growth and development, especially for developing economies. Unfortunately, Nigeria’s increasing debt profile, has not been managed efficiently and transparently to produce the desired economic benefits, but rather, as noted in this paper, the country may be treading towards the threshold of debt unsustainability at debt to GDP ratio of 40%. The country uses more than 90% of its revenue to service its debts, which, the paper noted has pushed the country into debt distress, macroeconomic challenges- financial and currency crises, high unemployment, and extreme poverty of nearly 50% of the total population. The paper thus proffered strategic policy recommendations, such as reducing cost of government, switching to interest free debt instruments, and asset-linked securitization; removal of fuel subsidies, and finally ensure transparent and ensuring public, parliamentary and creditors’ scrutiny of the public debts.
Title: THE ECONOMIC IMPLICATIONS OF HIGH DEBTS PROFILE TO A DEVELOPING NATION: EMPHASIS ON NIGERIA
Author: Dr. Amieyeofori Valentine Felix, PhD
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
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