INTRODUCTION
Most developing countries in the Sub-Saharan Africa, on average witnessed significant and consistent economic growth in their early years of independence (World Bank, 2004). Although majority of these countries succeeded in expanding their basic infrastructure and social services among others. It was therefore anticipated that much progress will be achieved in terms of raising the average income per head and improving on the general welfare of Africa following the average growth in real per capita income of about 3.8 % per annum between 1967 and 1970 (Mbanga, 2008). In the early 1970s, developing countries borrowed to finance their current account deficit. Such borrowing was geared towards boosting the level of economic growth and development. By 1980s, the developing countries’ debt had accumulated and the international financial institutions from this period started to provide both technical and financial debt-management assistance to debtor countries. However, this effort still aimed at fostering economic growth, was also equally meant to reduce both debt burdens and poverty level of these …show more content…
These are all indicators that the situation of economic growth and social welfare has changed from better to worse over time. While these measures succeeded in substantially reducing the external debt burdens of many middle-income countries, a different scenario played out for many of their poor counterparts. On the other hand, not much attention was being paid to the domestic debt. Thus countries such as Nigeria, have been witnessing bloated domestic debt. Generally, debt burden of poor countries had continued to pile up coupled with devastating environmental degradation, low level of infrastructures, chronic poverty and civil conflicts amongst others, culminating in lethargic economic