Debt Burden A Re-Examination of Its Effects on Nigeria’s Nation Building

S. O. Soetan, Osadola Oluwaseun Samuel

Abstract


Many nations in West Africa generated huge revenue majorly from foreign trade and investment during the period of the economic boom of the 1970. These countries however embarked on projects that could either not be completed or were of little benefits to their citizens. Most of the funds meant for such projects were either embezzled or mismanaged due to high level of corruption among the leaders. Hence, the fall out of crude oil in the 1980s, led to recession and economic deterioration as manifested by fiscal crisis, foreign exchange shortage, balance of payment problems and external debt crisis. These had enormous effect on the economies of West African nations. Indeed, beginning from 1982 and through 1984, the countries had become saddled with negative trends in economic growth, as indicated by decline in Gross Domestic Products, persistent current account and budget deficits, as well as a huge backlog of uncompleted projects. Thus, this research paper however discusses the various causes of debt burden as well as its various effects on nation building in Nigeria. It also examines the various debt management strategies and policies used by developing countries to control the rising debt burden. This paper derives its strength from both primary and secondary materials.

 

Keywords:Debt Burden, West Africa, Nigeria, Nation Building

Many nations in West Africa generated huge revenue majorly from foreign trade and investment during the period of the economic boom of the 1970. These countries however embarked on projects that could either not be completed or were of little benefits to their citizens. Most of the funds meant for such projects were either embezzled or mismanaged due to high level of corruption among the leaders. Hence, the fall out of crude oil in the 1980s, led to recession and economic deterioration as manifested by fiscal crisis, foreign exchange shortage, balance of payment problems and external debt crisis. These had enormous effect on the economies of West African nations. Indeed, beginning from 1982 and through 1984, the countries had become saddled with negative trends in economic growth, as indicated by decline in Gross Domestic Products, persistent current account and budget deficits, as well as a huge backlog of uncompleted projects. Thus, this research paper however discusses the various causes of debt burden as well as its various effects on nation building in Nigeria. It also examines the various debt management strategies and policies used by developing countries to control the rising debt burden. This paper derives its strength from both primary and secondary materials.


Keywords


Debt Burden, West Africa, Nigeria, Nation Building

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