This study empirically tested the hypothesis that external debt servicing leads to debt accumulation using Nigeria as case study. The method employed combines logic and debt stock variation analysis. Results indicate that Nigeria has served interest on its external debt only to see its external debt stock increasing confirming the hypothesis. A reform is needed to enable the country retain the domestic income lost to international speculative capital to boost government revenue. A sovereign agency to intermediate between the indebted residents, exporters, and the banking system can be created to solve the problem.
Author Bio
Shehu Mohammed Tijjani is a Professor of International Economics at the Department of Economics, Bayero University, Kano, where he has served since 2004 and is currently Head of Department. He earned his PhD in Economics from Aristotle University of Thessaloniki, Greece, in 2003. He has taught and conducted research at several Nigerian universities as a visiting professor, including Umaru Musa Yar’Adua University, Gombe State University, and the University of Maiduguri. His research interests include international development finance, monetary economics, capital flows, and applied time-series econometrics. He has published widely in national and international outlets and authored several books, including Applied Statistics, Writing a Thesis with R and RStudio, Writing a Journal Article with R and RStudio, with Labour Economics: Theory, Institutions, and Policy forthcoming.
Publication Title
Bullion
Issue
4
Volume
49
First Page
17
Last Page
28
Recommended Citation
Muhammed, Shehu Tijjani
(2025)
"The Problem with the mode of External Debt Servicing: the case of Nigeria,"
Bullion: Vol. 49:
No.
4, Article 2.
Available at:
https://dc.cbn.gov.ng/bullion/vol49/iss4/2
