IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCIAL MANAGEMENT (IJEFM )

E-ISSN 2545-5966
P-ISSN 2695-1932
VOL. 9 NO. 4 2024
DOI: 10.56201/ijefm.v9.no4.2024.pg116.126

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Government External Debts and Economic Sustainability in Nigeria

Samuel Sunday Charlie (PhD, CNA) and Akpan, Ifreke Isaiah

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Abstract

This study was an examination of government’s external debt and economic sustainability in Nigeria. The objectives of the study include to trace the trend of external debt and economic growth in Nigeria from 1990 to 2021, and to examine the effect of external debt on economic growth in Nigeria. Explanatory research design was adopted in the study, and secondary data was collected for 32 years (1990-2021) from the Central Bank of Nigeria (CBN) statistical bulletin 2021. The data collected was analysed using diagrams and linear regression technique. The findings showed that total external debt in Nigeria has a negative and insignificant effect on economic growth in Nigeria. This is an indication that total external debt cannot sustain economic growth. Recommendations made include the need for the government to desist from further external borrowing, and the need to ensure that the funds already borrowed are utilized for productive and not wasteful ventures.

keywords:

External Debts, Government, Economic sustainability

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