Foreign debts and its implication on Nigeria-China relations

ABSTRACT

Nigeria as a nation has seen the rise of China's economic interests across the country over the years, leading to excessive borrowing. When a country's income falls short of its expenditures, it may turn to borrowing either domestically or abroadas a means of balancing the budget, particularly in cases when increasing taxes or reducing spending would be politically unpopular. Questions like "what is the concept of foreign debt in Nigeria?" and "what are the prospects and challenges of foreign debt in Nigeria?" and "what is the causal impact of foreign debt from China to Nigeria goods on economic growth in Nigeria?" and "what are the possible factors responsible for foreign debt are as experienced from 2015 to 2020 in Nigeria?" served as the basis for this investigation. The study used a survey as the primary research instrument and the dependence theory as the theoretical framework; the study relied on data obtained from documentary materials such books, journals, Newspaper, Magazines, conference papers, and the internet. The study found that the constant need to borrow is what hinders development, with leaders' extravagant and opulent lifestyles being cited as examples. This was the case despite calls for a downward review of remuneration packages of public office holders, which were largely ignored. Those who think the massive amounts borrowed by the current government are not justified have also emphasized the importance of careful planning and the efficient use of borrowed monies. Research concluded that efforts should be made immediately to lessen the economy's reliance on oil by increasing its diversity. The government of Nigeria has to launch a massive public education campaign on the topic of whether or not the country can afford its current level of debt. In addition, we need to be more strategic about where and how we invest the money we borrow. Political leaders were also encouraged to rein in corruption and lower the high cost of governance. Investment in infrastructure (particularly roads and power), easier access to funding for MSMEs, and encouragement of agricultural expansion are all ways the Nigerian government may spur quicker economic growth.