EFFECT OF PUBLIC DEBT MANAGEMENT ON INFRASTRUCTURAL DEVELOPMENT IN NIGERIA

This study focuses on the effect of public management on infrastructural development in Nigeria. It aims at determining the relationship between public debt and infrastructural development in Nigeria. To achieve this, an empirical analysis of simple regression analysis of simple regression analysis of the least square method of parameter estimator was done. The significance of the estimated parameters was also subjected to tests like analysis of variance, student t-test, correlation coefficient (R) and coefficient of determination R2 . the empirical results via the parameters' estimates revealed that public debt and infrastructural development have negative relationship. The empirical analysis oft- test and F-statistic when compared with the p-value at 5% significance level, suggests the acceptance of Null hypothesis for both hypothesis tested stated for equation I &II which confirms the validity of the negative impact of public debt on infrastructural development of Nigeria and the negative impact of debt servicing on infrastructural development in Nigeria. The finding derived from respondents indicate that mis-application and mis-allocation of public funds are some of the main causes of the poor level of infrastructural development in the country. The government has incurred a lot of public debts to finance its budget deficit and this has also constituted a problem because it has not been efficiently and effectively managed. It has been recommended that borrowed funds should be used for the right purposes, funds allocated for infrastructural development should be judiciously utilized, government should not borrow funds to finance its budget deficit, and proper debt management techniques should be in place.