PUBLIC DEBT CRISIS, CAUSES AND STRATEGIES OF DEBT MANAGEMENT IN NIGERIA

Abstract

Nigeria has witnessed unprecedentedly high public debt over the years and this worrisome development has generated controversies among policy-makers, academics and the general public. This study therefore, explored the major causes of Nigeria public debt crisis, Nigeria's total public debt portfolios for 2021-2023 and solutions to public debt crisis in Nigeria. The methodology used is an exploratory study that reviewed empirical studies in respect of public debt, debt management, public debt crisis and open economy. It was found from the reviewed literature that to reduce the high public debt profile of Nigeria, there should be debt repudiation in form of debt forgiveness by creditor countries and other international financial institutions like International Monetary Fund, The World Bank and the Paris Club. Conclusively, public debt situation in Nigeria is burdensome such that embarking on any developmental project become herculean task as a result of debt servicing and payment of the principal. It is recommended among others that there should be restriction on borrowing; this consequently will reduce the debt stock of Nigeria. Also, corruption and financial waste cutting must be treated with all seriousness.

Keywords: Public debt, Public debt crisis, Debt management, Open economy