Impact of Debt Management on Nigeria’s Socio-Economic Development

Impact of Debt Management on Nigeria’s Socio-Economic Development.

ABSTRACT

This study examined Impact of Debt Management on Nigeria’s Development from 2000-2011.The study offers empirical explanations, and discusses the salient issues of significant management strategy adopted by Nigerian government in accordance with executive direction and organization.

Primary and Secondary data were utilized for the study. Primary data were collected through questionnaires. One hundred and fifty (150) questionnaires were administered. While secondary data were collected from relevant texts, journal articles, official reports, newspapers and magazines.

The quantitative data generated were presented and analyzed using table of frequency distribution, simple percentage, means and chi-square test. The study discovered that policy framework will improve effective debt management in Nigeria. The finding also revealed that external debt has significant effect on Nigerian economic growth within the period of this study.

The study also discovered that Nigerian government do not seek external loans for high priority and most project embarked upon do not have direct impact on socio-economic development and also that the loans acquired do not utilized for its purpose.

The thesis concluded by arguing for the desirability to reduce the debt burden, an increase debt servicing capacity, an increase in exports and reduction in world interest rates is required for achieving socio-economic development. In the acquisition of external loans, such loans should have direct impact on Nigerians

TABLE OF CONTENTS

Title pages

Title page i

Declaration ii

Certification iii

Dedication iv

Acknowledgement v

Abstract vi

Table of contents vii

CHAPTER ONE: INTRODUCTION

1.1 Background to the Study 1

1.2 Statement of the Problem 6

1.3 Objectives of the Study 9

1.4 Research Questions 10

1.5 Statement of Hypothesis 10

1.6 Scope and Limitation of the Study 10

1.7 Significance of the Study 11

1.8 Definition of Terms 12

1.8 Plan of the Thesis 15

CHAPTER TWO: LITERATURE REVIEW AND THEORETICAL

FRAMEWORK

2.1 Introduction 16

2.2 Conceptual Issues 17

2.3 Debt Crisis and Development: Conceptual Discourse 23

2.4 The Nature and Causes of Nigeria’s External Debt 44

2.5 Implications of Debt Burden on Nigeria’s Development 53

2.6 Debt Relief and Nigeria’s Development 54

2.7 External Debt: The bane of Nigeria socioeconomic and development 55

2.8 Institutional Structure and Regulatory Arrangements for Debt Management 60

2.9 Institutional Arrangement for Debt Management: The Debt Management Office 64

2.10 Theoretical Framework 70

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Introduction 81

3.2 Research Design 81

3.3 Population of Study 82

3.4 Sample Size and Sampling Technique 83

3.5 Data Collection and Instrument 84

3.6 Questionnaire Administration Procedure 85

3.7 Method of Data Presentation and Analysis 86

3.8 Limitation of the Methodology 87

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS

4.1 Introduction 88

4.2 Data Presentation and Analysis According to Research Questions

4.2.1 Analysis of Responses 89

4.2.2 Background Characteristics of Respondents 90

4.2.3 Presentation and Analysis of Operational Data 94

4.3 Analysis of Research Proposition 121

4.4 Discussion of Findings 133

CHAPTER FIVE: SUMMARY, CONCLUSION AND

RECOMMENDATIONS

5.1 Summary 135

5.2 Conclusion 138

5.3 Recommendations 141

Bibliography 145

INTRODUCTION

The Nigeria state, just like many other states in Africa (example, Kenya, Democratic Republic of Congo, formerly Zaire and Ghana to mention but a few) in the 1960s and early 70s were not indebted. When Nigeria attained independence in 1960, the world believed that, she will usher in economic prosperity for her citizens.

It was because of this thinking the world saw Nigeria as the future economic giant of Africa (AFRODAD, 2007). The thinking was not a mere wishful idea because oil, the money – spinner, had been discovered at Oloibiri in present – day Bayelsa state in 1956. By 1958, Nigeria had begun to export the black gold to earn petrol – dollars.

Also, agriculture was booming; cash and food crops were being produced massively and were fetching for the nation much foreign exchange. In fact, suffice it to say that Nigeria was blessed with an abundant and a viable human resource base, a favourable climate and a vast expanse of land more than twice the size of Britain (ibid).

BIBLIOGRAPHY

Abdulrahaman, D.A. (2006). Institutional Factors and Suncival of Democracy. In Saliu, H.A. et al (eds) Democracy and Development in Nigeria. Lagos. Concept Publication Ltd.

Adedayo, A. (1999), The Role of foreign aid in Nigeria’s Development”, in Saliu, H.A.(ed), Issues in contemporary Political Economy of Nigeria, Ilorin: Sally and Associates, pp, 283-94.

African Forum and Network on Debt and Debts, Stolen Wealth, IFIS and the West: A case study, Havare: African Forum and Network on Debt and Development.

Agagu, A. A. (2004). The Nigerian State Democracy and Development. A Hope Betrayed? In Agagu, A.A. and Ola, R.F. (eds), Development Agenda of the Nigeria State, Ibadan: Fiag Nigeria Publishers.

Agustus, A. (2000). Principles and Practice of Public Administration in Nigeria. Ibdan: Spectrum Books Limited.

Ajayi, K. (2000), International Administration and Economic Relations in changing World, Ilorin: Majab Publishers.

StudentsandScholarship Team.