Global public debt has gotten to historic highs in the post COVID era, with global government debt exceeding $100 trillion in 2024, or approximately 93% of global GDP. The challenge is much compounded for many developing and low-income countries by the high share of foreign-currency denominated debt, rising interest rates, and limited fiscal space. Large debt is as a result of persistent fiscal deficits, low domestic revenue mobilization, external shocks like commodity price volatility and climate disasters, cum the need to finance infrastructure and social programs. In as much as borrowing can help support growth, excessive debt leads to debt service crowding out, currency depreciation, credit downgrades, and reduced capacity for public investment in health, education, and climate adaptation. Countries with debt service-to-revenue ratios above 23% are classified as at high risk of debt distress by the IMF. High debt threatens and undermines growth and the achievement of the Sustainable Development Goals. This paper therefore looks into the problems, causes, consequences and policy options for managing huge national and foreign debt in order to make life more comfortable for people.
National debt, fiscal policy, external/foreign debt, developing economies, Nigeria, debt sustainability, fiscal deficit, debt-to-GDP ratio, sustainable development goals, corruption, capital flights, subsidy regime, tracking.
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