NIGERIAN DEBT CRISIS

CHAPTER ONE

Introduction

1.1 Background Of The Study

The word debt comes from the French dette and ultimately Latin debere (to owe), from de habere (to have). The letter b in the word debt was reintroduced in the 18th century, possibly by Samuel Johnson in his Dictionary of 1755 − several other words that had existed without a b had them reinserted at around that time.

Debt is as old as economy. The anthropologist David Graeber argues in Debt: The First 5000 Years that trade starts with some sort of credit namely the promise to pay later for already handed over goods. Therefore credit and debt existed even before coins.

Nigeria’s debts, like that of most other African countries, appear to be on a ceaseless and perpetual increase. The more we pay, the more we seem to owe.

Nigeria is neck-deep in the debt trap. Debt has become a millstone on Nigeria’s neck, jeopardizing her economic growth and compromising her social development. We spend a lion’s share of our national income servicing debts leaving little money for social services and infrastructures development, and even still much less for investment. In the process, we have paid more than we originally borrowed, yet our debt is like a malignant virus that continues to multiply.

Nigeria currently spends about one third of its budget, three times its sectoral budget for education and nine times its health budget on servicing outstanding debts.

In fact, since 1980, debt and education spending have been broadly reversed, with debt service rising from 1.9 per cent to 8 per cent of GNP, and education spending falling from 6.4 per cent to 1.3 per cent. Even so, Nigeria is only paying little over half its scheduled debt service. Grants from donor countries are now one-hundredth of the value of debt service. The reality is that there is a net transfer of funds from Nigeria to the developed countries.

1.2 Statement Of Problem

Debt allows people and organizations to do things that they would otherwise not be able, or allowed, to do. Commonly, people in industrialized nations use it to purchase houses, cars and many other things too expensive to buy with cash on hand. Companies also use debt in many ways to influence the investment made in their assets, “influencing” the return on their equity. This influence, the proportion of debt to equity, is considered important in determining the riskiness of an investment; the more debt per equity, the riskier. For both companies and individuals, this increased risk can lead to poor results, as the cost of servicing the debt can grow beyond the ability to pay due to either external events (income loss) or internal difficulties (poor management of resources).

Excesses in debt accumulation have been blamed for exacerbating economic problems. For example, prior to the beginning of the Great Depression debt/GDP ratio was very high. Economic agents were heavily indebted. This excess of debt, equivalent to excessive expectations on future returns, accompanied asset bubbles on the stock markets. When expectations corrected, deflation and a credit crunch followed. Deflation effectively made debt more expensive and, as Fisher explained, this reinforced deflation again, because, in order to reduce their debt level, economic agents reduced their consumption and investment. The reduction in demand reduced business activity and caused further unemployment. In a more direct sense, more bankruptcies also occurred due both to increased debt cost caused by deflation and the reduced demand.

1.3 Research Question

The following are the research questions that are aimed at obtaining more information and findings for the research work:

Does debt create negative impact on economic growth and development?
Does borrowing help to facilitate government expenditure in a country?
Has borrowing lead to debt crisis in Nigeria?
Can any economy survive without borrowing from any other economy?
Is Nigeria currently experiencing debt crisis?
If yes, can the debt crisis be completely eradicated?

1.4 Objective Of The Study

The following are the main objectives of this project research work:

To examine both the positive and negative effect as well as the impact of debt on Nigerian economic growth and development.
To employ and apply the dependency and liberal economic theories in order to demonstrate how these two theories help in the accurate analysis and explanations of the debt crisis in a developing country like Nigeria.
To examine debt crisis and the dwindling fortunes of a developing country like Nigeria.
To examination the problems that are associated with a large national debt, in relation to economic growth.
To examine the nature, sources and causes of public debt and some agencies through which foreign loans can be contracted.
To investigate a detailed comparison of internal and external indebtedness.
To investigate a detailed examination of the domestic and external factors that contributed to Nigeria’s debt problems; her economic dependence on petroleum resources; and the impact of all these on the economy.
Also to considered the prospects of international debt relief.
To provide recommendations for debt management.

1.5 Research Hypothesis

Based on the foregoing, the following research hypotheses formulated will be empirically tested and the result gotten will serve as a spring board for recommendations. The Null hypothesis will tested against the Alternative hypothesis. These are as follows:

Hypothesis 1

Null Hypothesis (Ho):

The amount paid of Nigerian debt each year is greater than the amount owe.

Alternative Hypothesis (Hi):

The amount paid of Nigerian debt each year is less than the amounts owed.

Hypothesis 2

Null Hypothesis (Ho):

Debt crisis has no negative impact on economic growth and development.

Alternative Hypothesis (Hi):

debt crisis has negative impact on economic growth and development.

1.6 Scope Of The Study

This research is limited to the study of Nigerian debt crisis; the origin and extent of the debt crisis as it affect the economic growth and development of the country.

The scope of the study also includes the study that is carried out to examine debt crisis and the dwindling fortunes of Nigeria. It includes the examination of the problems that are associated with a large national debt, in relation to economic growth.

It also includes the study of the nature, sources and causes of public debt and some agencies through which foreign loans can be constricted.

1.7 Significance Of The Study

This study and the results of the hypothesis tested will be of interest to academics and students in the area of public finance, public administration and economics; researchers in Nigeria and elsewhere; and others interested in the fate of Nigeria and other countries.

1.8 Limitation Of The Study

During the conduct of this research work, some factors posed as constraints to the determined efforts of the researcher to carryout the research study to such a depth and in such a manner that it ought to have been carried out, such factors include:

Time Constraint: Time was a factor that acts as hindrances in carrying out this research study. This is as a result of the fact that other academic activities were still being attended to in the course of carrying out this research work.
Financial Constraint: Money also acts as a problem in the conduct of the research work. Traveling expenses were incurred in getting the materials for the research work. Also incurred, were expenses for the typing and distribution, building and a lot of other expenses.

…

CHAPTER TWO

2.0 Literature Review

2.1 Introduction

The review of relevant literature is the main topic of this chapter. A literature review covers theoretical and methodological contributions to a certain issue in addition to the state of knowledge at the time of writing. It provides information about the state of the art in relation to the subject you are writing about. It examines the body of work on the chosen subject. The literature evaluation in this study comprises the …

Procedure for Downloading the PDF (Docx) Material

Nigerian Debt Crisis can be downloaded by requesting the full set of materials at the project or seminar cost. The document will be sent via Microsoft Word (MS-Word) format via WhatsApp (e-mail) following payment confirmation.

Seminar Material Cost
₦3,000

Project Material Cost
₦5,000

Request Complete Material

Complete Material Chapters of Nigerian Debt Crisis

Click here to request the Complete Material via WhatsApp including;

Preliminary Pages,
Chapter 1-5,
References and Appendix.

TABLE OF CONTENTS
PRELIMINARY PAGES

Title page
Approval page
Dedication
Acknowledgement
Table of Contents
Abstract
CHAPTER ONE
INTRODUCTION
1.1 Background …
⋮
CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
2.2 Conceptual Review
2.3 Theoretical Framework
⋮
2.4 Empirical Studies
2.5 Research Gaps
2.6 Summary of Literature Review
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction
3.2 Research Design
3.3 Population of Study
3.4 Sampling and Sampling Technique
3.5 Validation of Research Instrument
3.6 Method of Data Collection
3.7 Method of Data Analysis
3.8 Questionnaire Administration
3.9 Ethical Consideration
3.10 Statistical Analysis
CHAPTER FOUR
DATA ANALYSIS, RESULT AND DISCUSSION
4.1 Introduction
4.2 Presentation and Analysis of Data
4.3 Re-statement of Research Questions
4.4 Test of Hypotheses
4.5 Discussion of Findings
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Introduction
5.2 Summary of Findings
5.3 Conclusion
5.4 Recommendation
5.5 Suggestion for Further Study
REFERENCES
APPENDIX A - “QUESTIONNAIRE”

Disclaimer for Complete Material Utilization
The displayed research work titled "Nigerian Debt Crisis" is stated as a research guideline towards accomplishing your assigned project / seminar research work. All the research materials on this website are ONLY for research purposes and should be used as a guideline in developing your research work. For no reason should you copy word for word as projectlist.com.ng will not be liable for any who copied the material. By ordering the complete research guideline, it signifies that you've accepted our terms of service.

Frequently Asked Questions (FAQ)

Can the material for “Arsenic Pollution of the Subsurface Water” be used as a guide for Geology Project?

Yes it can be used — Study on arsenic pollution was conducted in Onitsha town in Anambra State, Nigeria to examine the pollution status of surface and subsurface water. Arsenic concentration in surface water within Onitsha metropolis ranged from 0.2001 mg/L (River Niger upstream) to 1.5883 mg/L (River Niger central drainage surface), while concentration in boreholes lies within the range of 0.0000 mg/L (22.2% of boreholes) and 1.2507 mg/L (creek road), respectively. Arsenic concentration in sampled water from river sources is above the WHO standard (0.01 mg/ L) while 87.8% of Arsenic concentration in boreholes adjacent and closest to these rivers and creek is also above the world Health Organization standard (WHO, 2011) of mg/L. it is discovered that pollution of surface water is greater than that …

Can the material for “The Effect of Instructional Materials on the Teaching and Learning of Mathematics in Secondary Schools” be used as a guide for Mathematics Education Project?

Yes it can be used — An instructional material is the series of equipment and materials used for teaching/learning by teachers to stimulate self-activity on the part of the pupils. The study was carried out to investigate the Effect of Instructional Materials on the Teaching and Learning of Mathematics in Secondary Schools. In achieving this aim, the following specific objectives were laid out to find out how frequently Mathematics teacher utilizes instructional materials during Mathematics lessons and determine the reason why the teacher do not use instructional materials. The research design used in this report is descriptive design, utilizing questionnaire method to obtain information from the respondents for this project. A total of 180 (one hundred and eighty) respondents were selected for this study to represent …

Can this topic “A Semantic Analysis of T-Shirt Inscriptions” be used for English Language Project?

Yes it can be utilized for research — This study examined the Semantic Analysis of T-shirt Inscriptions under the following perspectives: education, politics, advertisement and religion. It reviewed some scholar’s works on the concepts of Semantics, Graphology and Inscriptions. The method and procedures involved in the evaluation of the stated objectives of the research work included random sampling with the use of questionnaires which were distributed to twenty people who wear T-Shirt’s with educational, politics, religion and advertisement inscriptions in Lagos State – (Ifako-Ijaiye Local Government). The results of the findings of the four hypotheses generated were tested and the results were positive responses. This research work has therefore revealed the salient features of T¬-Shirt inscriptions in human endeavor. To this end, T-shirt with inscriptions under the aforementioned …

Can the material for “Automated Guest Information Tracking System” be used as a guide for Information System Project?

Yes it can be used — Guest Information comprises an individual’s data records and activities that process data and information in an organization and it includes the organization's manual and automated processes. The aim of this study is to design software that will serve as an electronic register to keep record of daily guest to the hotel. In achieving this aim, the following specific objectives were laid out to develop an application software that will provide an electronic register to keep record of guest visit to the Hotel and provide password to prevent unauthorized users from accessing and manipulating information. The motivation that led to the implementation of the proposed system is that keeping record of visitors in a Hotel has been a big task for the …

Can the material for “The Role in the Formation of a Regional Organization” be used as a guide for International Relations Project?

Yes it can be used — The purpose of this study is to examine the role of Nigeria in the formation of regional organization (ECOWAS) considering the need for West Africa to have a regional organization with common goals and the formative years of ECOWAS. This research also examines the Nigeria's interest in ECOWAS and the successes/challenges of the regional organization. Data was obtained from the secondary sources like Journals, textbooks, internet and all other secondary sources. More data were also gathered through interviews. The data obtained was analyzed using thematic format and a descriptive essay and the result revealed that Nigeria played a major role in the formation of ECOWAS because their special interest is in regional and borderless organization uniting the West African countries …

Can the material for “Design and Implementation of a Computerized System for Tariff Evaluation of Civil Servants” be used as a guide for Computer Science (CS) Project?

Yes it can be used — It is often easy to collect data about objectives of persons. However subsequent processing of such data presents problems especially when it involves numerous computations and retrieval of information. In the manual processing of large volumes of data too many mistakes can be made and much time wasted because of the ardors and cumbersome nature of associated tasks. This project is aimed at the design and implementation of tax evaluation system, for civil servant which will store all relevant information of a client, automatically processing the information of a scored generated document which the free pay allowance and tax due for the client, retrieve and display relevant information with regard to the client’s tax evaluation. The system has been designed to cater for …

Can the material for “Feminist Aesthetic in the Virtuous Woman and Zaynab Alkali’s the Stillborn” be used as a guide for English Language Project?

Yes it can be used — The study has examined the extent of the marginalization of the African woman in a sexist society which relegates womanhood to gender roles. It has discovered, for instance that the persistent inequality between men and women in the Nigeria society which Alkali works portray, has contributed to the general disempowerment of women. Alkali however, projects womanhood in a positive light she upholds female potentialities which the patriarchal structure has represent. As a feminist, she aims her female character with an intensity of vision and makes role models out of them. This study has further discovered that illiteracy among women is on a slow decline compared to that of men. The education of the female child is a rarity in Northern …

Can this topic “The Production and Utilization of Instructional Materials in Early Childhood Education” be used for Education Project?

Yes it can be utilized for research — In carrying out this study an attempt was made to conduct investigation into the production and utilization of instructional; materials for teaching and learning in Abeokuta South Local Government of Ogun state. As a survey research, the instrument used for data collection was a structured questionnaire designed by the researcher. The number of teachers used is 100 (one hundred) from ten randomly selected pre-primary schools in Abeokuta South Local Government Area in Ogun State. The findings revealed some of the problems militating against the production and utilization of instructional materials in pre-primary schools, which include among others lack of training for teachers on production of instructional materials in pre-primary schools and the attitude of teachers which affects the use of …

Can the material for “Design and Implementation of a Signature Recognition and Verification System” be used as a guide for Computer Science (CS) Project?

Yes it can be used — Signature is a special case of handwriting that can be considered as an image. There is a growing interest in the area of signature recognition and verification (SRVS) since it is one of the important ways to identify a person. Recognition is finding the identification of the signature owner. The aim of the study is to design and implement a Signature Recognition and Verification System using Lapo Microfinance Bank as a case study. In achieving this aim, the following specific objectives were laid out to develop an application software that will: identify the signature owner, make decision whether the signature is genuine or forger and ensure fraud detection regardless of the account individual signatory. The motivation that led towards embarking …

Can the material for “The Effect of Conflict Management on Employee Performance” be used as a guide for Human Resource Management (HRM) Project?

Yes it can be used — Conflict management is a skill any organization requires, as no organizations actually exist without the existence of conflict. The study was carried to investigate the Effect of Conflict Management on Employee Performance using Federal Polytechnic Ado-Ekiti as a case study. In achieving this aim, the following specific objectives were laid out to examine the impact of conflict on employee performance, find the means of managing conflict with the organization and emphasized the relationship between conflict management and the employee performance. The research design used in this report is descriptive design, utilizing questionnaire method to obtain information from the respondents for this project. A total of 150 (one hundred and fifty) respondents were selected for this study to represent the entire …