Nigeria’s External Debt Burden: Prognosis of COVID-19 Post-Viral Syndrome

Abstract

Given that nations, particularly those of the emerging world, require external borrowing to finance their desires for rapid economic development, contain calamities and insecurity, and achieve welfarism, is trite and verity. What is worrisome, however, is the crisis situation pervasively engendered by poor management of external debt, as a result of which the otherwise growth-inducing policy option degenerates into a harbinger of economic and social malaise. The objective of this study is to conduct an expository examination of the trajectory of Nigeria’s external debt burden; and to offer a prognostication of the post COVID-19 viral syndrome. Arising from the analysis of the historical antecedent, it was surmised that Nigeria would be challenged by vicious circles of debt crisis, and the associated domino effect on macro-economic stability. Accordingly, it was recommended that Government should in the interim de-emphasize external borrowing, except where the process is ineluctable; harness the alternative domestic taxation resources and taxing capacity, and refrain from consumption oriented budgeting.