(a) National or public debt is the debt a country owes to its citizens or other countries or organisations such as International Monetary Fund and the World Bank. The debt which a country owes its citizens is known as internal debt, while the debt owed foreign governments and organisations is known as external debt.
(b) Instruments of government borrowing in Nigeria are:
(i) Treasury certificate: These are securities for medium term borrowing. They are for a period of one to two years and they carry higher rate of interest than treasury bills.
(ii) Treasury bills: These are securities used for short-term borrowing for about 90 days. This carries low rate of interest.
(iii) Development stock: These are referred to as government stock and they are used for long-term borrowing of up to five years and above.
(iv) Negotiations: The government can borrow from external financial institutions
(v) National savings scheme.