The impact of foreign loans on Nigerian economy

Abstract

Foreign loans are external loans that come to Nigeria through the International Monetary Fund as an institution and other international organizations into the Nigerian economy for the purpose of carrying out huge project that requires huge funds, but these funds that come from international, financial institutions or  organization do not come without certain conditionalities attached to them and these over the years have made Nigeria to be servicing loans even though most of these Most loans are not tied to any particular project and on other hand, most of these loans find their way into private pockets no thanks to corruption and other sharp practices against these loans. The paper adopted the descriptive research design and depended on the secondary method of data collection and use the liberal institution the theory for it explanation. The paper revealed that foreign loans have provided Nigeria with essential capital for infrastructure, health, and education, helping to bridge the gap between domestic savings and investment. Additionally, sustainable loan management requires transparency, accountability, and strict adherence to debt sustainability frameworks. It is based on this that this paper is suggested that monetary loans should be discouraged and all loopholes that make corruption and stealing of these loans should be blocked through aggressive fight against corruption.