ABSTRACT

This study examined the impact of External debt management on economic growth of Nigeria. Using annual time series data collected over the period of 33 years (1986 – 2018). The data for the study were collected from the CBN statistical bulletin annual report. The variables on which data were collected include: Real Gross Domestic Product (RGDP), External Debt (EXD), External Debt service (EXDS), Balance of Payment (BOP) and Exchange Rate (EXR). Data were analyzed using multiple regression analysis. It proceeded with Descriptive statistics; Augmented Dickey Fuller (ADF) unit root test, Co-integration test and Auto-Regressive Distributed Lag (ARDL) model. In the model, Real Gross Domestic Product (RGDP) was used as a proxy for economic growth and Dependent Variable. Findings from the analytical result revealed that of the four independent variables tested, External Debt (EXD) exhibited an effect that is statistically significant with (P-value = 0.0130) on economic growth of Nigeria .This implies that strategic management of the various fund obtained through external debt has promoted economic productivity. External Debt Service (EXDS) has significant effect with (p – value = 0.0424) 0n the economic growth of Nigeria. This is an evidence that the Nigeria. Economy has gained at some point in time following the debt servicing in operation by the nation. Furthermore, Balance of Payment (BOP) with (P – value = 0.0085) showed a significant effect on economic growth of Nigeria. This means that within the reference period Balance of payment have contributed meaningfully to the economic output in the country. On the other hand, Exchange Rate (EXR) with (P – value = 0.2694) showed an insignificant effect on economic growth of Nigeria .This simply implies that exchange rate has hindered economic growth of Nigeria.