Understanding the Nigerian Domestic Debt

Kayode Johnson Ajayi *

Nile University of Nigeria, Abuja, Nigeria.

*Author to whom correspondence should be addressed.


Abstract

The portion of a country's overall public debt that is owed to domestic lenders is known as its internal or domestic debt. The public debt profile of a nation is comprised of its external and domestic debt stock. This article provides insights into the various components and major holders of the country's domestic debt. The Country’s domestic debt profile, which is currently on the rise, has led to numerous challenges in the economy such as debt overhang, higher debt servicing costs, unstable currency rates, and crowding out impacts on the private sector, among others. Therefore, measures have been recommended to curtail the level of increasing borrowings. The goal of setting up a distinct public debt management agency such as the Debt Management Office (DMO) by the government was to continuously accomplish the benefits of cautiously sourcing financing to cover for government deficits at reasonable rates and with manageable medium to long-term risks.

Keywords: Public debt profile, macroeconomic management, domestic debt, exchange rate instability


How to Cite

Ajayi, K. J. (2024). Understanding the Nigerian Domestic Debt. South Asian Journal of Social Studies and Economics, 21(6), 6–14. https://doi.org/10.9734/sajsse/2024/v21i6826

Downloads

Download data is not yet available.

References

Adebiyi WK. Olowookere JK. Managing Nigerian Debt: The Practical Solutions”. Research Journal of Finance and Accounting. 2013;4:19.

ISSN 2222-1697 (Paper) ISSN 2222-2847.

Asogwa RC. Domestic Government Debt Structure, Risk Characteristics, and Monetary Policy Conduct; 2008. Available:http://www.imf.org/external/np/res/seminers/2005

Alison J. Key Issues for Analyzing Domestic Debt Sustainability. Debt Relief International Publication; 2003.

Ngozi Okonjo-Iweala, Charles C. Soludo and Mansur Muhtar. The Debt Trap In Nigeria: Towards a Sustainable Debt Strategy. Africa world press incorporation. 2013.

Adofu I, Abula M. Domestic Debt and the Nigerian Economy. Current Research Journal of Economic Theory. 2010;2(1):22-26.

DMO’s Annual Report and Statement of Accounts; 2013.

DMO’s Full Report of the Annual National Debt Sustainability Analysis (DSA). Available:https://fbnquest.com/securities/solutions/fgn-savings-bond-offer

Asogwa RC, Ezema CC. Domestic Government Debt Structure, Risk Characteristics, and Monetary Policy Conduct: Evidence from Nigeria”. Final Research Report Submitted for the “International Research Project on Macroeconomic Policy Challenges for Low-Income Countries; 2014.

Nigeria’s Medium–Term Debt Management Strategy (2012-2023)

Peter NM, Denis NY, Chukwuedo SO. Analysis of Domestic Debt: Implication for Economic Growth in Nigeria. Global Journal of Social Sciences. 2013; 12:1-9. Available:www.dmo.gov.ng, ISSN: 1596-6216

Anyanwu, JC, and Erhijakpor, AEO. Domestic Debt and Economic Growth: The Nigerian Experience; 2004.

Johnson A. Key Issues for Analyzing Domestic Debt Sustainability. Debt Relief International Ltd., London; 2001.