DEBT MANAGEMENT STRATEGIES AND PUBLIC DEBT SUSTAINABILITY IN NIGERIA: ROLE OF BOND MARKET DEVELOPMENT
Kabiru Umar
Volume 1 Issue 1
Abstract
To examine the impact of debt management strategies on the Nigeria public debt sustainability, the study controlled for institutional quality. The study used secondary time series that for the period 1990-2020. The study applied the autoregressive distributed lagged model econometric methodology in order to investigate the long-run and the short run dynamics reaction of total debt/GDP of the country to Debt Relief (DEBTRL), Debt Forgiveness (DEBTFG), Debt Conversion (DEBTCV) and Bond Market Development index (BMD). The study found that DEBTRL and DEBTFG have negative and BMD has positive impact on total debt profile in Nigeria, while DEBTCV had no significant effect on the Nigeria’s debt profile, and INSQ has positive significant effect. Thus, the study concluded that DEBTRL and DEBTFG leads to significant drop in Nigerians’ debt profile, while BMD contributed to deterioration of public debt sustainability. The study recommended that government should devise measures aimed at diversifying the economy aimed at improved revenue inflows. On another hand a policy measure should be evolve to seek for debt forgiveness in order to reduce Nigeria’s debt profile. Keywords: Bond Market, Debt Conversion, Debt Forgiveness, Debt Management, Debt Refinancing,
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