Advanced Journal of Finance and Accounting

This study adopted an integrative review research method and examined debt sustainability in the context of fiscal space and sustainable entrepreneurship development in Nigeria from 1999 to 2022. The integrative review covers previous empirical research findings, reports and documentaries from relevant organisations (Central Bank of Nigeria, National Bureau of Statistics, Debt Management Office, World Bank and its affiliated bodies like the IMF) on fiscal deficit and entrepreneurship development. The study found that government revenue declined over the years, while its fiscal spending rose. It further revealed that as of the end of the 2022 fiscal year, the debt/GDP ratio, debt/export ratio, debt service/export ratio, and debt service/budget revenue ratio were 38%, 73.9%, 9.02%, and 112%, against the recommended thresholds of 40%, 150%, 20%, and 30% respectively. Based on the thresholds debt/GDP, debt/export, and debt service/export ratios, Nigeria’s debt is sustainable but cannot engender sustainable entrepreneurship development because debt service/budget revenue ratio of 81.1%, 92%, and 112% in 2020, 2021, and 2022 respectively, were too high, thereby constricting Nigeria’s fiscal space and depriving the country of revenues needed to service debt and ensure gross fixed capital formation. This study recommends that the Nigerian government should diversify the economy by investing in agriculture, manufacturing and technology sectors to improve revenue generation and expand Nigeria’s fiscal space. The government should monitor the tax authority’s adherence to implementing tax incentives to agriculture, business start-ups and domestic infant industries to encourage entrepreneurship. The government should embark on entrepreneurship promotion policies aimed at skills training on digital and financial literacy, mentoring, and networking opportunities, and supplier linkage programmes to enhance sustainable entrepreneurship development.