Foreign Loans a Threat To Nigeria’s Commercial Independence
Amaechi Kamsiyochukwu Eileen Ngoma
ABSTRACT
Foreign loans were described as loans issued by a foreign government in the form of money, bonds or other certificates of debt. The origin of Nigeria's reliancef foreign loans can be traced back to borrowings in the 1950s and 1960s to significant loans from multilateral and bilateral creditors in later decades, particularly the 1 billion dollars Jumbo loan of 1978. The study discussed how the persistent borrowing practices exposed Nigeria to restrictive loan conditions, debt burden, and undermined its economic sovereignty. The research adopted a mixed-method approach. Doctrinal method, Primary and secondary sources of information were relied upon. Primary sources included Fiscal Responsibility Act,2007, Debt Management Office Establishment Act, 2003 and Central Bank of Nigeria Act,2007. While secondary sources comprised journal, and the non-doctrinal method and primary data collected through an online survey of 51 respondents. The research found legal, institutional, and operational gaps in Nigeria’s debt management framework like the fact no framework defined loans, and no framework mentioned the ways in which loans can be handled or mode of repayment. and emphasized the risks of excessive debt servicing, vulnerability to external shocks, and challenges to sustainable growth. The research concluded the that Nigeria's over dependence on foreign loans undermined its commercial sovereignty, and without strategic reforms, Nigeria’s economic future and commercial sovereignty would remain compromised. The study recommended improved revenue generation, prioritization of domestic borrowing, institutional strengthening, and adoption of the triple helix
model involving government, academia, and industry for effective debt management and sustainable development.
