Debt Crisis and Nigerian Economy: An Assessment of the Buhari Administration (2015-2021)
Fadahunsi Fatima
Department of Political Science and Public Administration, Babcock University, Ilishan- Remo, Ogun State, Nigeria.
Osundina Olasunkanmi *
Department of Political Science and Public Administration, Babcock University, Ilishan- Remo, Ogun State, Nigeria.
*Author to whom correspondence should be addressed.
Abstract
External debt or recourse to loan borrowing is an effective measure providing alternative funding to augment limited monetary resources of a country in her quest for economic development. This loan, when appropriately used, advance infrastructural development that brings great dividend to the citizens but a departure from this put pressure on the economy which might lead to economy doldrums. Therefore, the aim is to examine if continuous loan actually generate economy buoyancy
The study use qualitative analysis. Hence, it adopts a case-study research design approach. Primary data were generated from interviews with experts in the field of debt management and researchers in the area of political economy. Also, secondary data such as; journals, articles, books, library websites, newspapers, theses and dissertation and Debt Data documented by the Debt Management Office (DMO) available for a seven-year period (2015-2021).
The paper found out that mismanagement and misappropriation of borrowed funds are the bane of development in Nigeria. Also, government neglect to economy diversification has made recourse to loan taking desirable as a source of alternative revenue for the country.
Therefore, it was recommended that better debt policies to restructure and checkmate debt profile in Nigeria should be instituted while diversification of the economy will address the debt-to-revenue ratio impact of borrowing.
Keywords: Debt crisis, Nigerian economy, Buhari administration and external debt