Public Debt and the Living Condition of People in Nigeria
Public Debt and the Living Condition of People in Nigeria

Summary/Abstract: This study assesses the influence of public debt on the condition of living in Nigeria using per capita income (PCI) which signifies the income per person in the country. Due to the fact that public debt is deemed to be suppressing an economy, the standard of living becomes the target of the estimated suppression. Thus, the study employs secondary data from 2000 to 2018 and multiple regression technique is used to carry out the analysis to establish the impact of public debt on PCI. The study finds that the foreign debt is having a substantial harmful effect on PCI while the domestic debt has a weighty favorable impact on PCI. These findings lead to a conclusion that the country is better off with local borrowing instead of external fund sourcing. Therefore, the study suggests that the government can borrow when it is highly necessary and really relevant to the accomplishment of a major capital project that will improve the income of the citizens, but the borrowing should be more domestic based and restricted to marketable securities.

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