EXTERNAL DEBT AND ECONOMIC GROWTH IN NIGERIA

EXTERNAL DEBT AND ECONOMIC GROWTH IN NIGERIA

ABSTRACT
This research work examines external debt and Economic Growth in Nigeria. The population of the study was 133 sta of the Rivers State Board of
Internal Revenue, Port Harcourt. The Taro Yamen’s formula was used to determine the sample size of 100. A self-designed questionnaire was
administered to the sample size and 100 were retrieved. The simple percentages was used to analyze the research question and Pearson moment product correlation coefficient
was used to test the hypothesis. The following findings were gathered. That External debt has impact on Gross Domestic Product in Nigeria; that external debt boost economic growth and development of a nation; that External debt servicing has erect on
Gross Domestic Product in Nigeria Economy; that External debt have implication on the economies of debtor nation; that Exchange rate has impact on Gross Domestic Product in Nigeria. Based on the above findings, the following recommendations were made: that Government should drop down external debt profile to reduce its impact on the Gross Domestic Product of Nigeria; the government should service external debt to
reduce its implication on the Nigeria Economy; the government should avoid external debt since it does not play any important role in the
development process of Nigerian economy, External debt has been unproductive in terms of its contribution to the GDP per capita of the country
hence the government should reduce the level of external debt it accumulates overtime and the government should as a matter of urgency begin the process of diversifying its economic base to avoid over reliance on external and domestic borrowing to finance its deficits since both the servicing of external and domestic debt hinders the growth and development of the nation.

EXTERNAL DEBT AND ECONOMIC GROWTH IN NIGERIA