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Article

A Mismatch between External Debt Finances and Consumption Cost in Nigeria

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Department of Accounting, College of Business and Social Sciences, Covenant University Ota, Ota 110001, Nigeria
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Department of Accounting and Finance, College of Business and Social Sciences, Landmark University, Omu-Aran 240001, Nigeria
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Department of Banking and Finance, College of Business and Social Sciences, Covenant University Ota, Ota 110001, Nigeria
*
Author to whom correspondence should be addressed.
J. Open Innov. Technol. Mark. Complex. 2020, 6(3), 58; https://doi.org/10.3390/joitmc6030058
Received: 15 April 2020 / Revised: 29 April 2020 / Accepted: 30 April 2020 / Published: 30 July 2020
This study scrutinizes the influence of external obligation on the cost of living in Nigeria. In recent times, Nigeria has been tagged as the headquarters of world poverty due to the unaffordable cost of living that has resulted in all manner of crimes prevailing in the country. However, the role of foreign loans being contracted by the government in reducing consumption cost has become a concern, hence this investigation. This study made use of a secondary form of statistical records covering the period 2000–2018. The result of the data analysis has shown that external debt does not improve consumption cost, but rather aids the rising cost of living in Nigeria. In a nutshell, the study suggests that the government should invest a large chunk of the borrowed funds into agriculture and local manufacturing for sufficient food supply and provision of goods and services at reasonable costs. This study recommends support for infant industries and entrepreneurship to reduce the consumption cost in the country. The study also encourages the government to seek debt rearrangement or outright revocation by the lending institutions and countries. View Full-Text
Keywords: external debt; consumption cost; exchange rate; debt serving; finances external debt; consumption cost; exchange rate; debt serving; finances
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MDPI and ACS Style

Omodero, C.O.; Egbide, B.-C.; Madugba, J.U.; Ehikioya, B.I. A Mismatch between External Debt Finances and Consumption Cost in Nigeria. J. Open Innov. Technol. Mark. Complex. 2020, 6, 58. https://doi.org/10.3390/joitmc6030058

AMA Style

Omodero CO, Egbide B-C, Madugba JU, Ehikioya BI. A Mismatch between External Debt Finances and Consumption Cost in Nigeria. Journal of Open Innovation: Technology, Market, and Complexity. 2020; 6(3):58. https://doi.org/10.3390/joitmc6030058

Chicago/Turabian Style

Omodero, Cordelia O., Ben-Caleb Egbide, Joseph U. Madugba, and Benjamin I. Ehikioya 2020. "A Mismatch between External Debt Finances and Consumption Cost in Nigeria" Journal of Open Innovation: Technology, Market, and Complexity 6, no. 3: 58. https://doi.org/10.3390/joitmc6030058

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