EXTERNAL DEBT AND ECONOMIC GROWTH IN NIGERIA

ABSTRACT

This research study examines the impact of external debt stock, external debt servicing, and government expenditure on economic growth in Nigeria. Utilizing a quantitative research design, the study employed secondary data obtained from reputable sources such as the Central Bank of Nigeria Statistical Bulletin and the Nigerian Bureau of Statistics. The primary method of data analysis was the Ordinary Least Squares (OLS).Other methods used were descriptive and correlation analysis. The dependent variable is real gross domestic product (RGDP) and the independent variables are external debt (EXD), debt service payment (DSP), government expenditure (GEX) and foreign direct investment (FDI). The findings of the study show that external debt stock has a positive significant impact on economic growth in Nigeria. Government expenditure is positively and significantly related to economic growth in Nigeria. Debt service payment has a negative and insignificant impact on economic growth in Nigeria. Foreign Direct Investment has a positive and significant effect on economic growth in Nigeria. The study recommends that foreign borrowing by public organizations should be adequately monitored by the government agency in charge.