NIGERIA’S EXTERNAL DEBT MANAGEMENT (1982-1990)? AN APPRAISAL

NIGERIA’S EXTERNAL DEBT MANAGEMENT (1982-1990)? AN APPRAISAL

ABSTRACT

Nigeria’a external debt problem forioa tho subject matter of thia study. Because of the sensitivity and delicate nature of this economic problem to the survival of Nigeria as an economic sovereign state, the study sterta by identifying the various perspectives ilrcj which explanation of the world external debt crisis can be sought, and of course the implication of approaching the problem from this vintage position. A critical examination of the causes of the debt crisis is provided and the conclusion arrived at indicates that there are both domestic and foreign factors responsible for this. But of moot oxer ting is the recurrent crisis of the world capitalist system. The study then examines the various proposals put forwa^. by numerous authors and agencies and subsequently attempts to locate the various debt management policies adopted in Nigeria within the global debt strategies. Our analysis leads us to conclude that the various debt policy measures were premised upon wrong assumption: that the basic cause of the crisis was faulty domestic policies compounded by leakages and capital flight. This however, seems to have provided the justification for the articulation of structural adjustment programme which invariably insists on scouting external advice and supervision to ensure the adoption and implementation of “appropriate” domestic policies. Unfortunately however, xi policy measures euch as overtight austerity programme which necessarily entails controls on the level of the government expenditures, controls on the use of domestic credit, the elimination of subsidies, increases in producer prices for ‘agricultural produce, the adoption of the flexible exchange market, privatisation and commercialisation of public corporation seem to be pushing the economy further into the abyss of debt slavery. The analysis further demonstrates that finance capital sees the debt crisis Nigeria is facing as an opportunity to further penetrate and tighten up the country to the capitalist exploitative stranglehold by first doing away with all government and trade restrictions and constraints put in place through the various measures implemented by the country frits drive for industrialisation especially in the 1960s and 1970s. Finally, in order to overcome the country’s debt problem, the study recommends an indigenous debt strategy as well as a reform programme that should be complemented by the formation of regional/global debtor club and comprehensive planning.

NIGERIA’S EXTERNAL DEBT MANAGEMENT (1982-1990)? AN APPRAISAL