E ISSN: 2583-049X
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International Journal of Advanced Multidisciplinary Research and Studies

Volume 3, Issue 2, 2023

Impact of Debt Burden on Economic Growth in Nigeria: A Policy Discourse for a Borrowing Economy



Author(s): Miftahu Idris, Abdulhadi Haruna Aliyara

Abstract:

This study examined the impact of debt burden on economic growth in Nigeria. Secondary data collected from World Bank national data, central bank of Nigeria bulletin, Nigeria’s debt management office annual report, Ministry of finance for a period of 30 years, (1990 to 2020), and ordinary least square statistical tool was used to test the relationship between Nigeria’s debt burden and its economic growth. The study found that there is a positive, but insignificant relationship between foreign debt stock (FDST) and Gross Domestic Product, a negative, and insignificant or weak relationship between foreign debt servicing (FDSR) and Gross Domestic Product. The study concluded that the aggregate of Nigeria’s debt burden does significantly affect its economic growth. The study recommends that acquisition of foreign debt should be exclusively on economic considerations.


Keywords: Debt Burden, Economic Growth, Ordinary Least Square, Nigeria

Pages: 980-987

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