## The Size and Sustainability of Nigerian Current Account Deficits

_IMF Working Papers, June 1, 2001_

## Source details

**Canonical URL:** [The Size and Sustainability of Nigerian Current Account Deficits](https://www.imf.org/en/publications/wp/issues/2016/12/30/the-size-and-sustainability-of-nigerian-current-account-deficits-15152)

## Other formats

- [Markdown version](/en/publications/wp/issues/2016/12/30/the-size-and-sustainability-of-nigerian-current-account-deficits-15152/index.md)
- [Structured JSON version](/en/publications/wp/issues/2016/12/30/the-size-and-sustainability-of-nigerian-current-account-deficits-15152/index.json)
- [Bundle manifest](/en/publications/wp/issues/2016/12/30/the-size-and-sustainability-of-nigerian-current-account-deficits-15152/bundle-manifest.json)

## Bibliographic details
- Authors: Olumuyiwa S Adedeji
- Published: June 1, 2001
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451851021.001

---

### Summary
- This paper uses an intertemporal model of the current account and macroeconomic indicators to examine the size and sustainability of Nigerian current account deficits over the 1960-97 period.
- The results indicate that the Nigerian economy appeared to satisfy its intertemporal budget constraint during this period.
- However there were years marked by excessive current account deficits.
- The results also support the view that current account deficits accompanied by macroeconomic instability and structural weaknesses can degenerate in to an external crisis.

### Key findings
- The Nigerian economy, over 1960-97, appeared to satisfy its intertemporal budget constraint.
- There were individual years within 1960-97 marked by excessive current account deficits.
- Current account deficits combined with macroeconomic instability and structural weaknesses can lead to an external crisis.

### Subject areas and keywords
- Subject: Balance of payments, Current account, Current account balance, Current account deficits, Current account surpluses, External debt
- Keywords: capital flight, Current account, current account balance, Current Account balance, Current account deficits, current account determination, current account position, Current account surpluses, current-account sustainability, Excessive current account deficits, exchange rate, external sustainability, foreign exchange, Nigeria, Nigerian current account deficit, optimal current account, present value, structural adjustment, Sub-Saharan Africa, WP

---

## Content in this bundle

- **The Size and Sustainability of Nigerian Current Account Deficits - WP/01/87**
  - [The Size and Sustainability of Nigerian Current Account Deficits - WP/01/87 (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2001/_wp0187.pdf.md){rel="alternate" type="text/markdown"}
  - [The Size and Sustainability of Nigerian Current Account Deficits - WP/01/87 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2001/_wp0187.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/wp/issues/2016/12/30/the-size-and-sustainability-of-nigerian-current-account-deficits-15152_