Sustainability of Debt Relief on Poverty Alleviation in Nigeria

Abstract

Background: Nigeria is rich in natural resources and has the largest population in Africa, yet it remains entrenched in poverty. Many attempts have been made to improve the lives of the people, yet the majority still live below the poverty line. Debt relief is one such attempt at reducing poverty; however, the sustainability of debt relief is highly debatable.

Objective: This study explores the sustainability of debt relief as a strategy for alleviating poverty in Nigeria.

Methodology:  The study employs an exploratory design that involves qualitative data collection through in-depth interviews of international relations specialists. Secondary data from published research is employed to support the analysis to obtain a complete picture of debt relief and its impact.

Result:  The findings indicate that while debt relief provided temporary economic relief and allowed for the short-term stabilisation of Nigeria's economy, its long-term poverty reduction impacts are constrained. Corruption, inappropriate fiscal management, and stringent debt relief terms often counterbalance its benefits. The study also highlights that long-term poverty reduction relies on good governance, policy implementation, and institutional reform.

Conclusion: The study concludes that there is no meaningful long-term nexus between debt relief and poverty alleviation in Nigeria. Debt relief cannot be a sustainable solution for poverty without improvements in governance and structural reforms.

Unique Contribution: This study provides empirical evidence of Nigeria's debt relief-poverty reduction nexus, emphasising the need for sustainable economic policy independent of external debt relief.

Key Recommendation: The government of Nigeria must accord the utmost priority to institutional reforms to enhance transparency, accountability, and effective resource utilization so that economic relief can lead to effective poverty alleviation.