Effect 0f Deficit Budget Financing Sources on Inflation Rate in Nigeria (Published)
The study examined the effect of deficit budget financing sources on inflation rate in Nigeria. External debt, Ways and Means Advances, and Treasury Bills were the independent variables of the study, while inflation rate was the dependent variable. The study adopted an ex-post-facto research design, covering the period between 2011 and 2020. Secondary data were extracted from the Central Bank of Nigeria Statistical Bulletin. Ordinary Least Square multiple regression technique was used for the data analysis. In line with the specific objectives of the study which is to ascertain the effect of external debt, ways and means advances, and treasury bills on inflation rate in Nigeria, it was revealed that external debt and treasury bills have a significant effect on inflation rate in Nigeria. Ways and means advances have a positive and significant effect on inflation rate in Nigeria. This implies that among the explanatory variables, ways and means advances is the major determinant of inflation rate in Nigeria. The study recommended therefore that government policies on inflation rate should factor in external debts because of their negative effect on inflation rate. external borrowing should be prudently used in productive activities that can raise investments, reduced inflation and improve the country’s exchange rate. The Government should drastically reduce the rate they borrow from CBN. Any of such borrowing should be targeted towards developing the economy and they should always maintain the credit limit set by the CBN. The government should reduce the number of treasury bills issued to the general populace. Other sources of deficit budget funding, such as privatization of obsolete government institutions, should be considered by the government.
Keywords: External Debt, Inflation Rate, Nigeria, Treasury Bills, ways and means advances
Effect of Public Debt on Economic Growth of Nigeria: An Empirical Investigation (Published)
This study examined the effect of public debt on economic growth of Nigeria. Specifically, the study determined the impact of domestic debt on the economic growth of Nigeria; assessed the effect of external debt on the economic growth of Nigeria and analyzed the relationship public debt and the economic growth of Nigeria. Secondary time series data spanning thirty-seven years (1982-2018) was gathered in the study. Data gathered in the study was estimated using descriptive statistics, unit root test, Johansen co-integration test and vector error correction model. Discoveries from the study suggests that external debt exerts a negative long run and short run effect on economic growth of Nigeria and domestic debt was ascertained to exert positive long run and short run effect on economic growth of Nigeria. Based on these findings, the study suggested that policy makers should integrate appropriate measures towards ensuring suitable management of domestic debts; government should ensure that contracted national debts are directed towards encouraging investment in the country and government through necessary monitoring committees should ensure that national debts are directed toward the provision of basic amenities and services required for the development of communities and societies of the nation.
Keywords: Domestic debt, External Debt, Public Debt
The Nigeria Debt Structure and Its Effects on Economic Performance (Published)
The aim of this study is to verify the empirical relationship between the structure of Nigeria public debts and the nation’s economic performance over the period 1990-2015. The study employ relevant data from CBN statistical bulletin of various issues and the analysis are based on two regression techniques simple and multiple. The simple regression result indicates significant positive relationship at 0.05 level between aggregate public debt and Nigeria GDP. Multiple regression analysis indicate that while the multiple correlation coefficient is significant at 0.05 level, external debt in negatively signed while domestic debt signs positively with Nigeria’s GDP. The regression coefficients are all significant at 0.05 levels with a coefficient of determination (R2) value of 94.5 percent. Given the result, the study concludes that Nigeria public debts are valuable in predicting partially variations in Nigeria’s economic performance. It recommends that Nigeria should emphasis more of domestic debts in place of external debts. This should be done through development of new and varied money and capital markets products as well as enhanced internationalization of the operations of the Nigeria’s capital and money markets. It also recommended that development of indigenous technological potential be given priority to boost Nigeria technology and eventually economic independence.
Keywords: Domestic debt, External Debt, debt structure and economic performance