This paper examines the issuing of bonds on the financing of public projects: a problem or tool for economic management for sustainable development in Nigeria. To achieve the objective of the paper, relevant data was collected from textbooks, journals and the internet. Bonds are a firm contract of indebtedness entered by the government of a state with investors that have subscribed to or lent money to the state. The study while acknowledging the relevance of bonds in public project financing, is however of the view that the desire of government to exploit a specific source of external financing need to be purely depended on the costbenefit analysis associated with the source rather than the current political approach. Appropriation of future income for present day engagement is definitely a source of problem if governments record wastages in managing such funds raised to finance the implementation of identified projects. Therefore, the study concludes that public policy need not be a source of tomorrow’s problems. This calls for precautionary measures on the part of State Houses of Assembly who retains the right of approval of a Governors request to seek funds from the capital market and Securities and Exchange Commission who retains the role of an apex regulatory institution to show accountability and transparency.

This paper examines the issuing of bonds on the financing of public projects: a problem or tool for economic management for sustainable development in Nigeria. To achieve the objective of the paper, relevant data was collected from textbooks, journals and the internet. Bonds are a firm contract o...