DOMESTIC DEBT

This study analyses the interrelationships between fiscal deficit, domestic debt and economic growth in Nigeria. Using data between the period of 1981-2019. This study employed the use of Augmented Dickey Fuller (ADF) test, Co Integration test, Vector Error Correction (VEC) Lag Exclusion Wald Tests, Vector Error Correction (VECM) technique and Forecast Error Variance Decomposition (FEVD) analysis. The study utilized fiscal deficit, domestic debt, foreign debt and tax revenue as the independent variable used for the study. The findings proved that there is a negative and significant relationship between fiscal deficit and economic growth in Nigeria. It also revealed that budget deficit, foreign debt and tax revenue have significant impact on growth while domestic debt has an insignificant impact. The study recommends that for a desired level of growth to be accomplished in the country, the issue of budgeting, debt and taxation in Nigeria must be critically addressed with a view to optimizing economic
welfare.