External Debt Management and Economic Growth in Nigeria: 1981 - 2013

Abstract

This study examines external debt management and economic growth in Nigeria for the period 1981 - 2013. To achieve this objective, data was collected from secondary sources such as scholarly books and journals.  The data collected were analyzed using relevant diagnostics tests, unit root test, granger causality test and multiple regression models. The result revealed that there is a significant relationship between external debt payment and stock on the gross domestic product of Nigeria for the period under review. Hence, the paper concludes that the effective application of external debts into productive activities in the economy will stimulate economic growth. Therefore, the paper recommends that policy makers in Nigeria and foreign interests (especially the creditors to the developing economics) should be more conscious and concerned about the importance of effective external debt management to economic development processes.  Towards achieving this goal, the relevant authorities should employ a better technique to effect external debt management in terms of acquisition and optimal deployment of such debt should be channel to areas that will have direct bearing on the people.

Keywords: External Debt, Management, Economic Growth, Nigeria,