Effect of public debt on economic growth in Nigeria: An empirical analysis 1981 - 2018

Abstract

The study investigated the effect of public debts on economic growth of Nigeria for the period of thirtyeight (38) years, 1981 to 2018. Relevant secondary data were sourced from Central Bank of Nigeria Statistical bulletin and Debt Management Office. Among the objectives of the study is to: analyze the effect of domestic debts on the economic growth of Nigeria and evaluate the effect of foreign debts on the economic growth of Nigeria. The findings showed that domestic debts of the Federal government of Nigeria is positive and statistically significant to economic growth of Nigeria while foreign debts contribute less to the economic growth of the country. Cost of debts servicing is significant and has a negative effect on economic growth. Corresponding author: Alagba Ochuko S Email address for corresponding author: emurovwo@gmail.com First submission received: 10th June 2019 Revised submission received: 27th August 2019 Accepted: 9th September 2019