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This study evaluates debt burden, implications for infrastructural development in Nigeria for the period 1986-2019. The study embraced annual time-series data and employed the Fully Modified Ordinary Least Squares (FMOLS) estimation techniques to examine the relationship of the variables. The findings revealed that both current and lagged coefficients show a positive and significant relationship between domestic debt and infrastructural development; while the current and lagged coefficient of external debt shows a negative relationship with infrastructural development and not statistically significant during the study period. The implication of the findings is that increases in domestic debt of the federal government leads to an increase in Infrastructural development (at the short run) while federal government external debt hitherto has not resulted to any improvement in infrastructural development. Finally, Granger Causality test confirmed both uni and bi-directional relationship in the long run. The study, therefore, concluded that the external debt has not contributed significantly in the development of Nigerian's infrastructure and that the huge external debt profile of Nigeria even before the debt forgiveness of 2005/2006 to date is not justifiable and is uncalled for. It suggested that external loans should be restricted to specified identifiable infrastructural or productive projects.
Aladejana et al. (Wed,) studied this question.