Debt (domestic or external) is a feature, or rather, an integral part of eve!J' mudem econumy.
Developed and developing nations borrow to enhance development. However. while the
developing nations borrow to fasl-lrack the process of economic developmenl, the developed
nations borrow to keep their economies running and making progress. Theoretically, nations
resort to external borrowing to fast-track the process of economic development and Nigeria is not
leji out. However, emerging evidence from most borrowing nations, particularly, African
countries, shows that rather than develop, they end up poorer and more underdeveloped, thereby
bringing to test the theoretical basis for external debt acquisition. In Nigeria, for instance, it is
argued that the level of infrastructural deficiency, rising unemployment, poverty, etc do notjus(!jy
the quantum of external debts outstanding as at 2004 (S35.94billion) and that the country was
more developed in the 1 960s than presently. Evidence from available literatw-e however support.\"
this argument A number of factors have been identified as impediments to the noble objective of
external borrowing and relevant recommendations made to resolve the paradox
