An Evaluation of Dept Management Strategies for Ebeing Ffective Public Financial Management in Nigeria.


In a modern economy,there is distinction between the surplus economic units and the deficit economic units and inconsequence a separation of the savings investment mechanism.

This has necessitated the existence of financial institution whose jobs include the transfer of funds from savers to investors.

It is generally expected that developing countries, facing a scarcity of capital, will acquire external debt to supplement domestic saving (Malik et al, 2010; Aluko and Arowolo, 2010).

However, whether or not external debt would be beneficial to the borrowing nation depends on whether the borrowed money is used in the productive segments of the economy or for consumption.

Adepoju et al (2007) stated that debt financed investment need to be productive and well managed enough to earn a rate of return higher than the cost of debt servicing.

Table Of Contents

Title Page             i

Dedication             ii

Certification            iii

Acknowledgement               iv

Table of Contents       vi

Chapter one: General introduction

  • Background to the study 1
  • Statement of Research Problem and Research QuestionS 7
  • Objectives of Study 9
  • Hypotheses 9
  • Significance of Study 10
  • Scope and Limitations of Study 11
  • Scheme of Chapters 13
  • Definition of terms; 14
  • Historical Background of Central Bank of Nigeria, Sokoto branch. 14

Chapter two: Literature Review

  • Introduction 19
  • Theoretical Framework 19
  • Government Control over Debt 28
  • Lending and Credit Analysis 32
  • Public Financial Management in Nigeria 40
  • History of Nigeria’s Debt Crises 44

Chapter Three: Research Design And Methodology

  • Introduction 68
  • Research Design 68
  • Population Of the study 68
  • SamplingSizeand sampling technique 69
  • Source of Data Collection 69
  • Method of Data Collection 70
  • Method of Data Analysis 70
  • Hypothesis testing 71

Chapter Four: Data Presentation And Analysis

  • Data presentation and summary of findings 73
  • Provision and Analysis of Data Question 74
  • Test of Hypothes 77
  • summary of findings 87

Chapter five: Summary

5.1 Summary, Conclusion and Recommendations 93

5.2 Conclusion 94

5.3 Recommendation 96

5.5 Bibliography 99

Appendix 105


Background Of Study

Government debt, or borrowing, includes the contracting or guaranteeing of domestic and external (foreign) debt through loans, financial leasing, on-lending and any other type of borrowing, including concessional and non-concessional borrowing, whatever the source.

Debt management strategies is a framework that the government intends to use over the medium-term (five years) to ensure that debt levels stay affordable and sustainable, that any new borrowing is for a good purpose and that the costs and risks of borrowing are minimized.

The main important of debt management strategies in public financial management is that the borrowing country is increasing capacity and expanding output with the aid of foreign savings.

The debt, if properly utilized, is expected to help the debtor country’s economies (Hameed et al, 2008) by producing a multiplier effect which leads to increased employment, adequate infrastructural base, a larger export market, improved exchange rate and favorable terms of trade.

However, external debt or internal debt obligations results from disagreements between the Fiscal operations of the government when the total expenditure exceeds current revenue for a govern fiscal year.


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