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 are collected include: Real Gross Domestic Product,
External Debt, External Debt service, Balance of Payment and Exchange Rate. Data were analyzed using the
Ordinary least squares (OLS) multiple regression analysis. It proceeded with Descriptive statistics; Augmented
Dickey Fuller (ADF) unit root test, Co-integration test and Auto-Regressive Distributed Lag (ARDL). The study
revealed that impact of external debt management on economic growth of Nigeria over the period under review was
statistically significant with external debt, external debt service payment and balance of payment but statistically
insignificant with exchange rate. The study recommended that governments should establish and adopt an optimal
balance between external debt acquisition and application /allocation of the acquired funds to productive projects for
the purpose of making a high output and a steady economic growth. The management should live up to expectation
by encouraging efficient commitment of borrowed funds to productive projects so as to comply with debt serving
agreement and outright payments, measures such as improving exports should be implemented to ensure that local
currencies are stable.
