NIGERIA’S FOREIGN DEBT AND NATIONAL DEVELOPMENT (2015-2023)

ABSTRACT This study investigates the impact of Nigeria’s foreign debt on national development between 2015 and 2023, with particular emphasis on the implications of rising debt servicing obligations for economic stability and investment in critical development sectors. Anchored on the Debt Overhang Theory, the research adopts a descriptive and explanatory qualitative design, relying on secondary data from credible sources such as the Debt Management Office (DMO), Central Bank of Nigeria (CBN), and the World Bank. The analysis reveals that Nigeria’s foreign debt rose from $10.7 billion in 2015 to $41.6 billion in 2023, largely driven by declining oil revenues and increased borrowing for infrastructure. Although some developmental gains were recorded, the growing cost of debt servicing, exceeding 90% of government revenue by 2022, severely constrained investment in education, health, and social infrastructure. The study found that foreign debt, if mismanaged, undermines macroeconomic stability through inflation, currency depreciation, and fiscal imbalances. Consequently, the study recommends institutional reforms to enhance debt transparency, prudent borrowing tied to productive investments, and strengthened domestic revenue systems to ease fiscal pressure. It also calls for protection of social sector funding and enhanced public awareness to foster accountability and sustainable debt practices. These findings contribute significantly to policy debates on responsible external borrowing and development financing in emerging economies.