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Nigeria’s Cyclic Borrowing and its Implications for National Development

Okafor, Celestine Ogechukwu, Amakoromo, Woyinmo Timi, Asiegbu, Victor Iheanyichukwu,


Funds are indispensable assets for concretizing the policies and goals of a state towards national development. Thus, the success of a state in attaining its goals is contingent upon and measured by the volume of funds at its disposal. This paper argues that the Nigeria cyclic borrowing over the years since the return to democratic rule in 1999 has assumed a worrisome dimension as it seems to have consistently barricaded, distorted and disarticulated all efforts at achieving sustainable and all-inclusive national development. The major concern of this paper is to examine the implications of unending borrowing on socio-economic and political development in Nigeria. The study employs a synthesis of the dependency theory and social order theory of negotiation as its theoretical framework. The study is dependent on documentary method for data collection and analyzed through qualitative content analysis. Findings show that despite the abundant natural and human resources, the country’s economy still remains in bad shape or impoverished state. This leads to desperation and dependency and thus, places the country in a disadvantaged position to negotiate favorable borrowing terms which has dire implications for national development. It is recommended that if Nigeria wishes to get out of this cycle of borrowing and engender national development, it must diversify her mono-cultural economic system and reduce her dependency stance to the barest minimum. Keywords: Cyclic Borrowing, Debt, Dependency, National Development and Negotiation.

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