Nigeria's Debt Burden and the Dialectics of Economic Development- in the Eyes of a Theorist

Abstract

Nigeria, with a population of over 200 million people, is a resource-rich country that has been grappling with a significant debt burden despite its vast natural resources. The origin of her indebtedness is traced to the 1970s when the country began borrowing extensively to finance various development projects. Since then, the trend has continued unabated with profound implications on her national life. This study therefore investigated Nigeria's debt burden and the dialectics of economic development. The study was divided into three main sections and subsections respectively. It examined the resource curse theory and other theoretics that help explore the phenomenon under investigation. The study employed a mixed-method approach to examine how Nigeria’s significant debt burden is a consequence of poor economic policies, and the implications of this on the overall wellbeing of the Nigerian state. The study adopted mixed method of analysis of data. Results from the study show that Nigeria's debt accumulation, driven by government misdirected spending resulting from the nature and character of economic policies, has negative implications for national development. While debt is utilized as a tool for financing development projects, its mismanagement and resultant excessive accumulation in Nigeria hinders sustainable development and exacerbate socio-economic inequalities. Thus, the study recommended, strengthening institutional capacity to manage borrowed funds; investment in critical sectors and prudent debt management, transparency, and accountability to mitigate the adverse effects of excessive borrowing.