IMPACT OF PUBLIC DEBT ON INFRASTRUCTURAL DEVELOPMENT IN NIGERIA (1990-2023)

The challenges of a high debt portfolio with deficit infrastructural development have affected the needed economic development in Nigeria. The study analyzed the impact of public debt on infrastructural development in Nigeria. The scope of the study was taken from 1990 to 2023; secondary data were sourced from the Debt Management Bulletin and Central Bank of Nigeria Bulletin. ARDL model was used to analyze the data, and the result revealed that external debt had positive and significant impact on infrastructural development in the long run on   the other hand, the domestic debt had a negative but insignificant impact on infrastructural development in Nigeria which means that domestic if not well managed will lead to a decrease in infrastructural development in Nigeria. However, the ECT (-1) further revealed that the model is reliable with its value of (-0.522833) which shows that the model is converging. Based on the study's findings, it can be said that Nigeria uses its public debt to support infrastructural development. Nonetheless, to guarantee that infrastructural development in translate to economic growth in Nigeria, there is need for Government to constitute committee to properly monitor the implementation of loans collected. Therefore, any effort by Nigeria's government to boost infrastructural through infrastructural development by continuously using debt, especially external, should be steady make policy for proper monitoring of the implementation of the projects collected loans for. Similarly, Central of Bank of Nigeria, Federal Ministry of Finance and Federal Ministry of Works should ensure through projects tracking all capital projects are proper monitored of the implemented.