Adepoju, Adenike Adebusola and Salau, Adekunle Sheu and Obayelu, Abiodun Elijah (2007): The Effects of External Debt Management on Sustainable Economic Growth and Development: Lessons from Nigeria.
Download (89kB) | Preview
This paper reviewed the roles of debt management practices on sustainable economic growth and development with particular emphasis on Nigeria. Information was generated extensively from literature, the Nigeria Central Bank and National Bureau of Statistic reports. The analyses of the data collected with descriptive statistics shows that, availability of access to external finance strongly influences the economic development process of any nation. Debt is an important resources needed to support sustainable economic growth. But a huge external debt without servicing as it is the case for Nigeria before year 2000 constituted a major impediment to the revitalization of her shattered economy as well as the alleviation of debilitating poverty. The much needed inflow of foreign resources for investment stimulation, growth and employment were hampered. Without credit cover, Nigerian importers were required to provide 100 percent cash covers for all orders and this therefore placed them to a competitive disadvantage compared to their counterparts elsewhere. Failure of any owing country to service her debt obligation results in repudiation risk preventing such to obtain new loans since little or no confidence will be placed on the ability to repay. It will also undermine the effort to obtain substantive debt relief over the medium term with a tremendous increase in interest, arrears and other penalties. This will subsequently depress the economy both in the long and short runs. Best arrangement in debt payment must be put in place from time to time in response to changes in the economy and the polity. Debt can only be productive if well managed so as to make the rate of return higher than the cost of debt servicing.
|Item Type:||MPRA Paper|
|Institution:||University of Ibadan and Ladoke Akintola University of Technology|
|Original Title:||The Effects of External Debt Management on Sustainable Economic Growth and Development: Lessons from Nigeria|
|Keywords:||Debt Management; Sustainability; Economic Growth; Economic Development; and Nigeria|
|Subjects:||E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E62 - Fiscal Policy
|Depositing User:||Adekunle Sheu Salau|
|Date Deposited:||09. Mar 2007|
|Last Modified:||19. Dec 2014 07:42|
Adebayo, O. Olukosi (1990): Nigeria External Debt Crisis: Its Management: Malthouse Press Ltd, Lagos. Pp. 23-27 Adeyemi S.O (1996): “Beyond Structural Adjustment: A policy Framework”, In Beyond Adjustment: Management of the Nigerian Economy 1996 NES conference Proceedings, Pg 113 – 141. Akintayo, F (1990) Nigeria’s External Debt , Obafemi Awolowo University, Press Ltd. Ile –ife Nigeria Pg 23, Anyanioh J.C (1993): Monetary Economics: Theory, Policy and Institutions. Hybrid Publishers Onitsha. Pg 243. Anyanwu J.C, Oyefusi A, Oaikhenan and F.A. Dimowo (1997): The Structure of the Nigeria Economy. Joanee Educational Publishers Ltd, Onitsha, Anambra. Pg. 631. Arikawe, Akin (2001): Nigeria and the Highly Indebted Poor Countries (HIPC) Initiative (I). A Paper Prepare for The Joint UNITAR / WAIFEN Sub–regional Workshop on Debt Negotiation and Renegotiation for West Africa Nations Banjul, Gambia 23 – 27 200. Association of Nigeria Belgium (2005): Debt Relief for Nigeria. www.newstartnigeria.org. Falegan, S.B. (1992): Nigerians External Debt Burden. Fountain Publication, Ibadan. Pp 31-40 Obadan M.I (1997): “External Sector Policies in the 1997 budget CBN/NCEMA/NES Policy Seminar on the 1997 Federal Government Budget, NIIA, Lagos, 25 February. Obadan M.I (2000): “External Sector Policies 2000”. Bullion a publication of the CBN Vol 24 No2, Pp 39 – 43. Obadan M.I (2004): External Sector Policy. In Bullion CBN publication, Vol. 28 No, Pg 30 – 40 Owusu, Kwesi (2001) Drops of oil in a sea of poverty – the case of a new debt deal for Nig. www.jubilee.plus.org. Kersley Helen, Pettifor Ann and Janet Bush (2005): What does the Paris club deal mean for Nigeria? In Advocacy International, Walmit Tree, London. July 2005. Pp 1 – 10 www.Nigeria’sDebtcancelledinParisclubdeal Klein, T. M (1994): External Debt Management: An Introduction. World Bank Technical Paper No 245. World Bank Washington DC. National Bureau of statistical (2005): Nigerian Statistical Fact Sheets on Economics and Social Development. Pg 31 – 32 Nwoke, C (1990): The Origins and Dimension of Nigeria External debt: In Nigeria External Debt Crisis; Its Management. Edd by Adebayo O. Olukosi. Malthouse Press Ltd, Pg 42 – 61. Oyejide T.A., Soyede A. and M.O. Kayode (1985): Nigeria and the IMF. Heinemann Educational book Nig. Ltd. Ibadan Pp. 9. Rieffel Lex (2005) Nigeria’s Paris Club Debt Problem Brooking institution Policy brief. Global Economy and Development center, Brookings institution Washington DC 20036 Pg 2. www.brookings.edu. ThisDay Newspaper 6th April (2005) Nigeria: Debt Relief: Nigeria Signs final Bilateral Agreements. Ubani Eziuche (2005): Nigeria, Paris club sign Debt Deal. Thisday newspaper Lagos October 21, 2005. Wiertsenna, W: 2006: Case Study Nigeria. www.newstartnigeria.org Yesufu T.M (1996): The Nigerian Economy: Growth without Development Bennin Social Series for Africa. University of Bennin, Bennin city, Pg 89 – 110