ABSTRACT

The research examined how debt servicing impact economic growth in Nigeria. It used variables such as real gross domestic product as the dependent variable and domestic debt servicing, external debt servicing and exchange rate as the independent variables. The data spans from 2000 to 2021 and employs Autoregressive Distributed Lag Model (ARDL), unit root test, co-integration test and diagnostic tests. The result indicates a long term relationship among the variables.

Specifically, the study found out that there is a negative relationship between real gross domestic product and domestic debt servicing. This satisfies our apriori expectation.

Similarly, the study shows that there is a positive relationship between real gross domestic product and external debt servicing which does not conforms with our apriori expectation.

Finally, in the same vein the study also shows that there is a negative relationship between real gross domestic product and exchange rate which also conforms with our apriori expectation.