The Debt Crisis of Nigeria and Greece Essay

5187 Words Aug 9th, 2012 21 Pages
The debt crisis of Nigeria and Greece
Introduction
National debt is a problem that can inflict any country including the developed countries. Almost all countries go into budget deficit one way or the other and end up borrowing money. The most direct effect of the government debt is to place a burden on future generations of taxpayers. When these debts and accumulated interest come due, future taxpayers will face a difficult choice. Inheriting such a large debt cannot help but lower the living standard of future generations. In the 1960s and 1970 some developing countries were encouraged to borrow money to service old debts and also to finance development projects in their country like infrastructure. This has been necessitated by the
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Nigeria is Africa's most populous country; and the country, once a large exporter of food, is forced to import food.
The economy of Nigeria is based on imports such as; manufactured goods, machinery and transport equipment, food and live animals, animal and vegetable oils and fats, crude materials, beverages, mineral fuel lubricants, tobacco, chemicals, and textiles. The income is supported by the exportation of goods such as; petroleum and oil, cocoa beans, rubber, cotton, yam, palm kernels, hides and skins but is mainly dependent on the exportation of petroleum. Petroleum is therefore leading mineral produced in Nigeria. The oil industry has attracted many people to live in urban centres, at the expense of the agricultural sector.
This crisis is so deep and self-regenerative that it has imposed a feeling of hopelessness and despair on the people. Some allege that a combination of poor economic management characterized by looting of national resources, exploitation, and absence of a purposeful and patriotic leadership accounts for the rapid collapse of the national economy. These have resulted in colossal and pervasive waste of resources and the inability of the Nigerian state to translate opportunities into national development, with the damaging effect of very high incidences of poverty, conflicts, leading to destructions of lives, property and underdevelopment. For instance, although the revenue profile of government indicated rising trends, the United Nations Human

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