Effect of Rising Debt Burden and Public Expenditure Pattern on Revenue Sustainability in Nigeria

Ebe, Emmanuel Chukwuma 1 Eze Charles Uzodinma 2 Ubesie, Cyril Madubuko 3
1, Department of Accounting, Michael Okpara University of Agriculture, Umudike, Nigeria
2 West African Examination Council (WAEC) Abakaliki
3 Department of Accountancy, Enugu State University of Science and Technology Agbani, Nigeria
1 Corresponding author email address: onyikechimezie@gmail.com

This study investigated the effect of increasing public debt burden and expenditure patterns on
revenue sustainability in Nigeria. The study aims to ascertain the effect of debt burden and public
expenditure pattern on revenue sustainability in Nigeria. Secondary data spinning the period 1999
through 2018 was generated from the CBN statistical bulletin. Multiple regression analysis was
adopted using SPSS version 22. Other tests conducted include autocorrelation, normality. Results
revealed that the rising debt burden, public expenditure pattern, and corruption impacted
negatively on revenue sustainability in Nigeria. The study concluded that diversification of the
economy is inevitable but for more thriving diversification of the Nigerian economy to manifest,
the debt burden must be drastically reduced and the expenditure pattern changed. The study
recommends restriction on borrowing to capital projects that will encourage diversification and
strict monitoring on the uses of borrowed funds to ensure compliance, increase in the allocation
to capital expenditure in the budget to conform to international best practices, automation of the
accounting system, and adoption of integrated government management system in all ministries
and parastatals as a means to fight corruption, fully-fledged International Public sector
Accounting System (IPSAS) to enhance transparency and accountability in governance, reduction
in the cost of governance.
Key words: Debt Burden, Public Expenditure pattern, Revenue sustainability and Nigeria
economy.

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