Title: Nexus Of External Debt Management And Economic Growth In Nigeria
Authors: Lawrence Boboye AJAYI and Idowu Eunice ALADESANMI
Volume: 10
Issue: 6
Pages: 178-183
Publication Date: 2026/06/28
Abstract:
Pairwise Granger causality was utilised to evaluate the relationship between Nigeria's economic progress and external debt management. The results linked Nigeria's economic progress to external debt management. The data show no correlation between LNGDP and LNTDS or LNDSP. No correlation exists between LNEXR and LNGDP. Additionally, LNCAP and LNGDP are unrelated. Since LNINFR and LNGDP are unrelated, external debt management does not affect Nigeria's economic development. Based on these findings, the study recommends using borrowed funds for projects that pay themselves off over time, using public debt for economic growth, negotiating debt contracts in a way that benefits both parties, focussing on domestic investment rather than debt, and distributing borrowed resources to the productive sector.