BUSINESS AND FINANCE JOURNAL

DEFICIT BUDGET FINANCING AND ECONOMIC GROWRH IN NIGERIA

IGONIDERIGHA ROSELINE PhD
February 13, 2026

Abstract

As a nation grapples with development challenges, the strategic utilization of deficit budgets emerge as a prominent policy tool for fostering economic expansion. This study examined the effects of deficit budget financing on economic growth in Nigeria from 1981 to 2023. Ex-post-facto design was adopted for the study. Three hypotheses were formulated and tested at 0.05 level of significance. The study employed secondary data obtained from published statistical bulletin of Central Bank of Nigeria between 1981 to 2023. The data gathered was analysed using ordinary least square regression technique via E-views version 9. Findings revealed that Federal Government domestic debts, external debts and exchange rate have a significant effect on real gross domestic product in Nigeria between 1981 to 2023. It was recommended that the federal government of Nigeria should maintain optimum level of domestic debt as it represents a veritable mechanism through which the much-desired accelerated and sustainable economic growth can be achieved.

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BUSINESS AND FINANCE JOURNAL

Published in BUSINESS AND FINANCE JOURNAL

ISSN: 988-47878

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