Debt Financing as a Panacea for Nigeria’s Economic Recession

Nwadighoha Chinedum Ephraim PhD, FCNA

Department of Accounting,

Michael Okpara University of Agriculture Umudike, Abia State, Nigeria

Email: chinedumnwadighoha@yahoo.com

ABSTRACT

This study is aimed at the investigation of debt financing as a panacea for Nigeria’s economic recession. Economic Recession which is a decline in the Gross Domestic Product (GDP) for two or more consecutive quarters is the present situation faced by the Nigeria’s economy and needed an urgent solution. A population sample size of three hundred and sixty (360) respondents were used and two hypotheses were formulated and tested in line with the objectives of the study the following findings were made, that external debt financing is one of the best strategies for economic recovery during recession and that diversified and expanded export earnings has a significant and positive effect for economic recovery during recession. It was therefore recommended that during economic recession, the best strategy for economic recovery is debt financing and deficit budget approach.

Keywords: Panacea, recession, debt financing, economic, deficit budget