The Relationship Between Foreign Debts, Corruption and Infrastructural Development in the Nigerian Economy

Description

– The Relationship Between Foreign Debts, Corruption and Infrastructural Development in the Nigerian Economy –

Download The Relationship Between Foreign Debts, Corruption and Infrastructural Development in the Nigerian Economy. Economics students who are writing their projects can get this material to aid their research work.

Abstract

The study, which relied on secondary data, investigated the relationship between foreign debts and Nigeria=s infrastructural development and verified the effect of corruption in the debt crisis.

The study employed both quantitative and qualitative methods in analyzing the data. This is a major gap the study filled up amidst existing literature as it adopted its own structural and working equation models peculiar to development and incorporates corruption to the study on the relationship between foreign debts and infrastructural development in the Nigerian economy.

The study identifies corruption as a major factor that undermines infrastructural development through its negative influence on investment, and its ability to lower the amount and quality of public infrastructure supplied to the nation as a whole.

Introduction

The Nigerian economy began to experience an apparent downturn in terms of its foreign reserves when the oil market weakened in the early 1980s.

The disturbance in the world oil market from 1980 led to a sharp drop in export revenue and consequently government finances. Inspite of this, the government was bent on executing its Fourth National Development Plan (1980 – 1985), in the hope that  e disturbance would be short-lived.

Accordingly, more debts were incurred leading to an enormous rise in the country=s fiscal deficits. Since the Federal Government took the stand that A sustainable and accelerated growth@, had to be pursued,

it opted for foreign capital inflow and Ogundipe (1985) asserted that Nigeria=s domestic and external debts rose to x27.95 million and x17,290.6 million respectively (CBN Statistical Bulletin Vol.6, No. 1 June 1995:100).

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