Festus Ubogu (PhD), Emmanuel Onyeka Ejiofor (PhD)


This study examined the effect of domestic and external debt on economic growth in Nigeria for period of 1990- 2021 Data for the study were sourced from the Central bank of Nigeria Statistical Bulletin and National Bureau of Statistics and the webpage of World Bank Hypotheses were formulated and tested using ordinary least square regression (OLS) model and linear regression model. The research design is ex-post factor using two models to analyze the effect of external and domestic debt on economic growth in Nigeria. This study used GDP growth rate as a function of public debt while taking domestic debt and investment as dependent variables. The findings from the study showed that though in the short run the impact of borrowed fund on the Nigeria economy was positive, the impact of debt on the long run depressed economic growth as a result of incompetent debt management. There is also no relationship between external debt and economic growth in Nigeria economy. The study recommended that the government should reduce the level of external debt it accumulates overtime, but domestic debt accumulation would contribute significantly to the development of the economy. Government should therefore develop a framework for recording and monitoring all contingent liabilities and also formulate and implement a policy for management of the contingent liabilities.


Effect, Domestic Debt, External Debt, Economic Growth, Nigeria.

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