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. 9 2024
DOI: 10.56201/ijefm.v9.no9.2024.pg53.83

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Effect of External Debt on Economic Growth in Nigeria

Fineboy Ikechi Joseph, Kelechi Calistus Nwankwo, Williamson Eucharia Ihuoma

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Abstract

The study focused on the effect of External Debt on the economic growth in Nigeria. To achieve the objective of the study, ex-post facto research design was adopted. The data were collected through secondary source from CBN statistical bulletin and World Bank data bulletin from 1993- 2023. Multilateral Debt, Paris club debt, London club debt, promissory note debt and others debt were used to measure external debt while gross domestic product was used to measure economic growth. The data collected were analyzed using ordinary least square multiple regression analysis. The result from the analysis revealed that Multilateral Debt, Paris club debt, London club debts, promissory note debt and other debts have significant effect on economic growth in Nigeria. Based on the findings, it was recommended that the total external debt incurred should be channeled towards the purpose meant for its existence. The structure of the external debt should be apportioned to the ratio of its lowest interest that would be later used in financing that particular external debt. Also, the issues of other external debt should be identified for the purpose of analyzing the general economy.

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