External Debt Management And Its Effect On The Growth Of The Nigeria Economy (1995-2017)

ABSTRACT

This research work was aimed at ascertaining the effect of debt management on economic growth in Nigeria. Ex-post facto research design was adopted for the study. While data on Real Gross Domestic Product (RGDP), External Debt, loan repayment and exports revenue were used as obtained from Central Bank of Nigeria Statistical Bulletin, 2017. The period of study was 1995-2017. Model was formulated and data were analyzed using Ordinary Least Square. The dependent variable was RGDP, while the explanatory variables were external debt, loan repayment and export revenue. It was discovered that external debt had a positive and significant effect on Real Gross Domestic Product. Also, loan repayment had a negative and significant effect on Real Gross Domestic Product, exports had a positive and significant effect on RGDP. The study recommended amongst others, that through proper monitoring, Debt Management Office (DM0) should ensure that loans are utilized for the purpose for which they were acquired.