Public Debt Sustainability Measures and Its Growth Implications for the Nigerian Economy

Authors

O. W. Gobna, University of Abuja
G. Usman, University of Abuja
S. S. Mohammed, Prince Abubakar Audu University, Anyigba, Kogi State

Publisher

Central Bank of Nigeria

Keywords

economic growth, nonlinear, non-oil revenue, oil revenue, sustainability

Abstract

This study utilises the linear and nonlinear autoregressive distributed lag (ARDL) models to investigate the impact of public debt sustainability measures and its growth implications for the Nigerian economy from 1981 and 2021. The results suggest that public debt-to-oil revenue ratio (PDOR) has a significantly negative effect on economic growth both in the long- and short-run. It also shows that public debt-to-non-oil revenue ratio has an asymmetric effect in the short-run and a positive relationship on economic growth in the long-run. The study concludes that economic growth needs to be enhanced through improved government non-oil revenue. Therefore, to bolster economic growth, the Nigerian government needs to improve revenue generation through non-oil industry by encouraging private investments and widening the tax net.

Author Bio

Gobna, O. W., and Usman, G., are staff in the Department of Economics, Faculty of Social Science, University of Abuja, Abuja, while Mohammed, S. S., is a staff in the Department of Economics, Faculty of Social Science, Prince Abubakar Audu University, Anyigba, Kogi state

Publication Title

CBN Economic and Financial Review

Issue

2

Volume

60

First Page

27

Last Page

53

Classification-JEL

F34; F40; F43; H63

Recommended Citation

Gobna, O. W., Usman, G., and Mohammed, S. S. (2022). Public Debt Sustainability Measures and Its Growth Implications for the Nigerian Economy. CBN Economic and Financial Review, 60(2). 27 - 53.