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NATIONAL OR PUBLIC DEBT
CONTENT
- Meaning of National Debt
- Instruments or Sources of Government Borrowing in Nigeria
- Reasons Why Governments Borrow
- Some Terms Associated With Budget
- The Burden of National or Public Debt
Meaning of National Debt
National or public debt refers to the debt a country owes to its citizens or other countries or organizations such as the International Monetary Fund (IMF) and the World Bank. The debt which a country owes its citizens is known as internal debt while the debt owed foreign governments and organizations is known as external debt.
Instruments or Sources of Government Borrowing in Nigeria
The government of Nigeria can use the following instruments to borrow money. These include;
- Treasury certificate: These are securities for medium term borrowing. They are for a period of one to two years and they carry higher rate of interest than treasury bills.
- Treasury bills: These are securities used for short-term borrowing for about 90 days.
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ClassHall Instructor
Halima Ahmadu
Maryam
Maryam