ABSTRACT

 The study examine the effect ofexternal debt on economic growth ofNigeria. The objectives of the study are; To examine the effect of external debt on change in GDP ofNigeria, and to ascertain the effect ofdebt servicing on change in GDP ofNigeria. To achieve the objective of the study, ex-postfacto research design was adopted. The researcher adopted secondary data in getting the required information through Central Bank ofNigeria (CBN) Statistical Bulletin (various years), and internet and journal publications. In testing the hypotheses, the study employMultiple regression analysis in order to determine the effect of external debt on economic growth ofNigeria. The findings revealed that external debt has anegative significant effect on real gross domestic product in Nigeria. The study recommends that Debt management regime should be refocused to ensure that external debt repayment is exogenously determined. Moreover, future external debt should be attached to a specific capital development program to ensure the growth in the economy. The study also recommends that the respective debt servicing index should be kept in check. Nigeria should develop also debt management policies that are tailored towards investment opportunities that will spur revenue for debt repayment and in turn drive the nations’ economic growth in the long run.