IMPACT OF EXTERNAL DEBT SUSTAINABILITY ON ECONOMIC GROWTH IN NIGERIA

EDEH, MERIT CHISOM (2025) IMPACT OF EXTERNAL DEBT SUSTAINABILITY ON ECONOMIC GROWTH IN NIGERIA. Other thesis, GODFREY OKOYE UNIVERSITY, ENUGU.

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Abstract

The study appreciated the role played by the external debt sustainability problem on economic growth in Nigeria by utilising the annual time series ranging between 1981 and 2023. It particularly calculated the effects of external debt servicing, exchange rate and openness of trade to the real gross domestic product (RGDP) using multiple regression model. The test that checks the unit roots indicated that the variables were not stationary although a cointegration test identified that there existed a long-run relationship of equilibrium. Short-run regression was thus modelled using error correction model. It was revealed that exchange rate and trade openness positively affected economic growth significantly on a short run whilst servicing external debt had significant negative impacts. It was reckoned that the effect of external reserves, gross fixed capital formation, and interest rate had a positive, yet not significant influence on the economic growth. Servicing the external debt also again had a powerful but negative impact on the RGDP in the long-run though the impact on exchange rate and openness of trade clearly had a positive and statistically significant relationship respectively. The capital formation and interest rates as well as externals reserves were insignificant. To achieve sustained growth of its economy, the researchrecommended that there was need to renegotiate the terms of its debt, export-driven approaches to exploit the exchange rate parameters, liberalization of trade, and adjustment of structure in the distributions and sources of investment and interpolation money regime.

Item Type: Thesis (Other)
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Management and Social Sciences
Depositing User: Uchenna Eneogwe
Date Deposited: 18 Jun 2026 08:34
Last Modified: 18 Jun 2026 08:34
URI: http://eprints.gouni.edu.ng/id/eprint/5827

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