The Impact of Debt Burden on the Economic Growth of Nigeria (1970- 2021)

Abstract

The study used autoregressive distributed lag (ARDL) to examine the influence of external debt on

Nigeria’s economic growth using annual time series data from World Bank Development Indicators from

1970 to 2021. The findings show a significant positive relationship between interest rates and economic

growth in the short and long run. In contrast, inflation rate significantly negatively impacts economic

growth in the short and long run. External debt, external debt service, and the exchange rate have an

insignificant impact on economic growth in the short and long run. The study recommends reducing the

cost of governance to promote development, while investment in the Nigerian economy should be

encouraged.