VOlUME 05 ISSUE 06 JUNE 2022
1John Akintayo OMIMAKINDE, 2Segun Zacchaeus ONIFADE
1National Centre for Technology Management, Obafemi Awolowo University, Ile-Ife, Nigeria
2Department of Economics, University of Ibadan, Nigeria
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ABSTRACT:
Nigeria is one of the most highly indebted countries that have low income growth and low per capita income. Government seems to lack the potentials to generate revenue domestically to meet up with developmental goals and other national in order to attain the desire economic growth. Hence government resorts to borrowing. The paper examines the relationship between domestic debt and economic growth in Nigeria. The results reveal that domestic debt does not have significant impact on economic growth in the short run but significant negative impact in the long-run. The government should therefore monitor the disbursement of loan on real growth- enhancing capital projects instead of recurrent expenditure. Also, government should formulate policies aimed at increasing her ability to generate more revenue to meet her expenditure demand.
KEYWORDS:Domestic debt, revenue, economic growth, Nigeria
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