PUBLIC DOMESTIC BORROWINGS AND ECONOMIC GROWTH IN NIGERIA

This study examined the relationship between public Domestic borrowings and Economic growth in Nigeria. Data from 1988 to 2018 were examined. Data were collated and computed from the Central Bank of Nigeria (CBN) Statistical Bulletins, 2018 edition. The study utilized the Ordinary Least square (OLS) regression model to establish the relationship by Gross Domestic dependent variable (Economic Growth measured by Gross Domestic product) and the variables (public domestic borrowings measured by treasury bills, treasury certificates and treasury bonds). The regression model was estimated according using the Ordinary Least square (OLS) technique. Data analysis was carried out at 5% level of significance using t-calculated and t-tabulated values. The results of the study showed that: the Treasury bill has a negative and significance influence on the gross domestic product in Nigeria. Like the treasury bill, Treasury certificates increases is likely to be followed by relatively reduced output in Nigeria. This shows a large extent the non-product influence of this public domestic borrowing instrument in the economy. Though, both variables are seen to be related with no direct causality. On recommendation, the Treasury bill as an instrument should be carefully administrated to avoid typing up productive capital and crippling the Nigeria economy. There is still a need to promote the use of treasury certificates and treasury bonds in the discount houses since their historical data low activities.