ROLE OF PUBLIC DEBT ON EDUCATIONAL SPENDING IN NIGERIA: 1980–2022
Yusuf Isah Usman , Adam Abubakar Sulaiman , Salisu Ahmadu and Surajo Mohammed
Volume 12 Issue 3
Abstract
The study investigates the effect of public debt on educational spending in Nigeria. The work spanned forty-three years, from 1980 to 2022. Using a bound testing approach for co integration and an error correction model developed within an Autoregressive Distributive Lag (ARDL) Model, the long-run equilibrium relationship and impact of public debt on educational spending were assessed. Using the approach, the study discovered evidence of a long-run link, that domestic debt and debt services have a negative effect and significance at 5 percent. External debt and exchange rates, on the contrary hand, have a beneficial impact on educational spending, despite only by a small percentage. As a result, the study recommends that policymakers prioritise prudent fiscal policy to increase revenue within the economy by diversifying sources to finance education and other government expenses for the purpose to balance short-term demand with long-term benefits, particularly in education and human capital development, for sustainable economic growth and social development. Keywords: Education; Public Expenditure; Public Debt; Exchange Rate;
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