Debt is something that owes usually money that is used by many corporations and individuals to make large purchases that they could not afford under normal circumstances, and the borrowing party has permission to borrow money under the condition that it is to be paid back at a later date, usually with interest (James, 2021). Aid on the other hand is referred to as money, equipment, or services that are provided for people, countries, or organizations who need them but cannot provide them for themselves (CollinsDictionary, 2023).
Nigeria's public debt reached N44.6 trillion in the third quarter of this year (Elizabeth, 2022) The country's debt and aid can be impactful in the sense that the government should direct the borrowed funds to the diversification of the productive base of the economy. This will boost long-term economic growth, widen the base of taxation, and increase the country's ability to pay off its obligations when they're due. Fiscal improvements that encourage domestic resource mobilization, efficient debt management strategies, and reliance on domestic debt rather than external debt for increased deficit financing to engender greater growth (Yusuf, 2021).
The gap between the poor and the rich will always be wide as the rich are always involved in the system while the poor continue to struggle to get involved in the system. Nigeria as a case study the distribution of resources are uneven and can be felt by the ones who live from hand to mouth while some hoard wealth treasuries cannot contain, and therefore, the wider the gap between the rich and the poor in Nigeria, the more insecure and unhealthy the Nigerian society becomes. The widening gap between poverty and inequality in Nigeria explains why it may be a tall dream for the populous Black Country to meet the Sustainable development goals of eradicating unemployment, extreme poverty, and hunger. The privileged class holding the levers of power does not see the danger of building an army of the unemployed, distressed, and disconnected populace who will fight back against the system which has failed to cater for it (Oludayo, 2021) If the wealth gap between rich and poor in Nigeria is not closed, the aspirations and hopes of the underprivileged would be ridiculed. Because they are given little consideration and protection by the security or legal systems, poor people frequently suffer the most. They lack the resources to pay for security fees, legal representation, or medical care (Saduwo, 2021)
Reference
James, C. (2021, January 13). What is debt? URL: https://www.investopedia.com/terms/d/debt.asp
Collins Dictionary, (2023). Aid meaning. URL: https://www.collinsdictionary.com/dictionary/english/aid
Elizabeth, A. (2022, December 09). Nigeria's public debt hits N44trn. Retrieved from: https://www.vanguardngr.com/2022/12/nigerias-public-debt-hits-n44trn/amp/
Yusuf, A., & Mohd, S. (2021). The impact of government debt on economic growth in Nigeria Cogent Economics & Finance, 9(1), 1946249.
Oludayo, T. (2021, July 21). Poverty and Widening Inequality in Nigeria. URL: https://www.vanguardngr.com/2021/07/poverty-and-widening-inequality-in-nigeria/amp/
Saduwo, B. (2021, March 9). Bridging the gap between the rich and the poor in Nigeria. URL: https://dailytrust.com/bridging-the-gap-between-the-rich-and-the-poor-in-nigeria