Exploring the spatial distribution of domestic debt in Nigeria

다국어 초록 (Multilingual Abstract)

The rapid growth in domestic debt in Nigeria, coupled with the high level of debt servicing is a huge challenge given its negative impact on economic development.
However, there is scanty evidence on the spatial disparities and the correlates of rising domestic debt in Nigeria. Moreover, are the high or low amounts of debt a function of the spatial variations in socio-economic, macroeconomic and political economy factors? Hence, this study examined the spatial distribution of domestic debt and determined to what extent socio-economic, macro-economic and political economy factors are associated with state-level variations in domestic debt. Spatial statistics of Global and Local Moran’s I were used to examine the patterns of domestic debt while ordinary least squares model and spatial error model were applied to determine the correlates. Results show that there was significant clustering of domestic debt while population density and corruption were the significant predictors of the spatial pattern. The study recommends the need to closely monitor states with large population size so as to void the debt trap and leverage the potentials of human capital. Also, corruption at all levels of government should be curtailed.

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