Sustainability Analysis of Nigeriaas Foreign Debt Profile and Management Strategies

Abstract

Over the years, Nigeria has faced series of development challenges despite the fact that the governments have constantly accessed credit facilities for national development. This contradiction became a source of worry for scholars, journalists, and commentators who began to question the management of the country's foreign debt. The debate became more critical and controversial when Nigeria in attempt to wriggle itself out of the foreign debt burden negotiated "Debt Relief" with the major external creditors. While some individuals share the view that the negotiated debt relief actually relieved Nigeria from its financial burden; others contended that the purported "Debt Relief" more or less worsened Nigeria's indebtedness to the creditors because the conditions like previous ones associated with the debt management strategies were more exploitative than palliative. Although attempts have been made to examine the country's debt management strategies by investigating the trends in Nigeria's debt profile, adequate research-based attention has not been given to the extent which the "Debt Relief" is effective and sustainable.