By: Dennis Ewubare, Rosemary Chioma, Elvis Ozulem Wokekoro
Pages: 54–65, Volume: 2, Number: 1
Published by: AEFUNAI Journal of Economics, Finance and Development Studies, Alex Ekwueme Federal University, Ndufu-Alike, 1/1/2025, 2025
ISSN (Electronic): 2536-6742
DOI:
Impact of Domestic and External Debts on Income Inequality in Nigeria
Abstract:
This paper examines the relationship between domestic and external debt and income inequality in Nigeria between 1990 and 2023. Using the Error Correction Model (ECM), the study finds that while external debt can provide necessary capital for infrastructure, the high cost of debt servicing often diverts funds from social welfare programs, thereby widening the gap between the rich and the poor. The study recommends a more transparent debt management strategy focused on wealth-redistributing projects.
Keywords: Domestic debt, External debt, Income inequality, Public finance, Macroeconomic stability
How to Cite
Ewubare, D., Chioma, R., & Wokekoro, E. O. (2025). Impact of Domestic and External Debts on Income Inequality in Nigeria. AEFUNAI Journal of Economics, Finance and Development Studies (AEFUNAI-JEFDS), Vol. 2(1), 54–65.
Creative Commons Attribution 4.0 International License (CC BY 4.0)
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