DEBT BURDEN AND INFRASTRUCTURAL DEVELOPMENT IN NIGERIANS FOURTH REPUBLIC

Abstract

This study examines the nexus between debt burden and insufficient infrastructural development in Nigeria. Every development oriented government in the world takes loan to finance its policies and projects. However, for individuals, corporate organizations and even countries, debt management can be a difficult task. Nigeria, though naturally rich, is classified as one of the Heavily Indebted Poor Countries (HIPC). The paper reveals that the emerging situations in Nigeria today are over indebtedness, misplacement of priority, unnecessary and imprudent loan that have increased the debt burdens of the country and in turn affects infrastructural development. The most alarming fact is that the rising debt burden and the cost of servicing public debt (especially external) has certainly constrained the ability of government to undertake more productive investment projects in infrastructure, education and public health. This is because debt burden has an adverse effect on the national income as well as the per capital income of the nation. On this basis, the paper among others, recommends that to avoid the crisis of economic development in general and infrastructural development in particular, public debt should be reduce to the barest minimum. Besides, government should be sincere and focus more on internally generated revenue to finance development projects until all the debts and its interests are finally settled. It observed that it is imperative for the government to cut down cost of government with the view to promptly redeeming loans repayment and its servicing. It also recommends that government should rely more on domestic debt in stimulating growth and infrastructural development in the country.