*Dept of Accounting, Faculty of Management Sciences, Lagos State University
**Dept of Banking and Finance, Lagos State University and Finance
Online published on 26 September, 2013.
The problem of debt has assumed a crisis proportion in Nigeria. What makes the debt crisis more critical is that Nigeria still has the unenviable distinction of being one of the most impoverished countries in the world. The paper examines the contribution of the total debt portfolio on the real sector growth in Nigeria.the simple linear regression was adopted to measure the growth effect of debt portfolio on the real sector growth.
It was revealed from the study that the real sector as measured by the value of investment in the sector does not benefit from the debt portfolio the relationship between debt portfolio and the real sector growth is adverse and very low.
It was recommended that government should tie future loan stock to specific investment to be carried out by both effort of the government and the private sector. It was also recommended that future loan should be tie to real sector investment on a specific item bases.
