A REVIEW OF EXTERNAL DEBT SERVICING AND ECONOMIC GROWTH IN NIGERIA
A REVIEW OF EXTERNAL DEBT SERVICING AND ECONOMIC GROWTH IN NIGERIA

Summary/Abstract: The threshold of external debt service toward economic growth is a continuously debatable topic among researchers globally. The issue is widely debated, particularly in highly indebted developing countries such as Nigeria. This paper investigates the impact of external debt service on the economic growth of Nigeria from 1985 to 2021. Using the Ordinary Least Squares (OLS) estimation technique, the result indicates that debt service hampers the growth of the Nigerian economy. This implies that the external debt service burden drains the country's income, which should have been channeled to increase future production. The finding also shows that the stock of external debt promotes economic growth. It is hereby recommended that proper management of the external debt stocks by governments in more productive sectors could bring further growth.

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