INVESTIGATING THE IMPLICATIONS OF EXTERNAL DEBT AND DEBT MANAGEMENT STRATEGIES

ABSTRACT

For many emerging nations including Nigeria, the issues of external debt has played a crucial role in determining economic strategy. This study explores the intricate interplays between debt management techniques and foreign debt, as well as how these factors affect the expansion and improvement of the Nigerian economy. Nigeria serves as an interesting case study for examining the impact of external debt and the measures used to control it since it is one of the most populous countries in Africa and a growing economic powerhouse. The study uses a mixed-method approach, integrating quantitative analysis of qualitative evaluations of debt management strategies. It analyzes the main factors contributing to Nigeria’s accumulating external debt and names the principal creditors. Additionally, it evaluates how foreign debts affect important economic measures such as GDP growth, inflation, government expenditure and exchange rate. The efficacy of Nigeria’s debt management practices is also examined in this study, with an emphasis on debt sustainability, risk reduction and the compatibility of debt servicing responsibilities with national economic objectives. It analyzes how bilateral partners and global financial institutions have influenced Nigeria’s debt management strategies. In the end, this research intends to add to the discussion on sustainable economic growth in Nigeria and offer a useful resource for policymakers, economists, and 3 academics interested in the more general concerns of foreign debt management in emerging nations.