SINKING FUND, THE WAY OUT OF DOMESTIC DEBT IN NIGERIA: AN ANALYSIS

ABSTRACT
Public debt is a tool for governance, and domestic debt is inevitable in the financial administration of the developing countries of the World. When domestic debt rate is on the increase, it becomes worrisome to the government of a country and its management would need expatriate who will prudently manage it, as paying right away of its debt by a government would have an adverse effect on both the government and its citizens. This situation calls for the establishment of a Sinking Fund to retire the country’s matured domestic debt. A sinking fund connotes some potential advantages for a country to conveniently attend to its debt obligations This article analyzed the various fiscal monetary policies and .laws that established them in the country, it went further to state the objectives of a sinking fund, its operation, appropriation, the benefits and the problems of a sinking fund in an economy. The article among others, recommended that there is the need for the Federal Government to abide by the tenet of fiscal management law in the country, the need for expertise manager to manage the country’s domestic debt, and the need to slow down the domestic borrowing rates of the country so as to avert rising of its domestic debt.