TY  - BOOK
AU  - JOHNSON FISAYO VERONICA
TI  - EFFECT OF PUBLIC DEBT ON MACROECONOMIC PERFORMANCE IN NIGERIA
PY  - 2023///
CY  - Mountain Top University
PB  - Accounting and Finance
KW  - Accounting and Finance
N2  - Amidst the increasing rate of borrowing by both the state governments and the federal government of Nigeria on the need to improve infrastructures and improve the economic wellbeing of the populace, it seems that the objectives had not been achieved. The current study examined the effect of public debt on macroeconomic performance (economic growth, inflation,
unemployment, and interest rate) in Nigeria. Specifically, four research objectives were formulated. First to investigate the effect of public debt on economic growth; ascertain the effect of public debt on inflation; determine the influence of public debt on unemployment and ascertain the influence of public debt on the interest rate in Nigeria. Ex-post facto research design was adopted as research design and secondary data was collected on the study variables from 1990 to 2022. Simple Linear Regression (SLR) was used as a data analysis technique and the stated research hypotheses were tested at a 5% level of significance. The finding of
hypothesis one (𝛽0 = 5.663537; 𝛽1 = -0.037251; t- value= --1.095599; R-squared = 0.038472;F-value = 1.200337 and P-value > 0) revealed that public debt has a negative and insignificant effect on economic growth in Nigeria at 5% level of significance. Also, the finding of hypothesis two (𝛽0 = 12.78307; 𝛽1 = 0.225892; t-value = 1.349064; P-value = 0.1871; R-squared =0.055453; F-value = 1.819973 and P-value = > 0 ) established that public debt has a positive but insignificant effect on inflation in Nigeria at a 5% level of significance. Furthermore, the finding of hypothesis three (𝛽0 = 4.019596; 𝛽1 = 0.006209; t- value = 1.021812; P-value =
0.3148; R-squared = 0.0325; F-value = 1.04490 and p-value > 0) indicated that public debt has a positive and insignificant influence on unemployment in Nigeria at 5% level of significance.Lastly, the finding of hypothesis four (𝛽0 = 7.468473; 𝛽1 = −0.128561; t- value = - 1.510464; P-value = 0.1411; R-squared = 0.068552; F-value = 2.281502 and P-value > 0) revealed that public debt has a negative and insignificant influence on the interest rate in Nigeria. From the findings, it can be concluded that public debts have a mixed effect on the macroeconomic performance in Nigeria. Therefore, it is recommended that the Federal Government of Nigeria and the policymakers should take a holistic step in ensuring that the loans are judiciously used to enhance economic growth in the country. Also, the government must enforce good governance and institutional structures to discourage the misappropriation of
resources and encourage economic growth. It is also recommended that the government at both the state and federal levels should be cautious about the rate of borrowing. Keywords: Public debt, macroeconomic, performance, Economic, Growth, Inflation,
unemployment, Interest rate
ER  -