IMPACT OF EXTERNAL DEBTS ON ECONOMIC GROWTH IN NIGERIA
The study examined the impact of external debts on economic growth in Nigeria. Annual time-series from 2001 to 2022, sourced from Central Bank of Nigeria, Nigerian Exchange Group and Securities Exchange Commission, are adopted. The data was subjected to linear regression analysis which was used to...
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Department of Accounting and Finance, Federal University Gusau
2025-01-01
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| Series: | Gusau Journal of Accounting and Finance |
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| Online Access: | https://journals.gujaf.com.ng/index.php/gujaf/article/view/318 |
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| _version_ | 1823857036358582272 |
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| author | Ibrahim Yinka Agbeyinka |
| author_facet | Ibrahim Yinka Agbeyinka |
| author_sort | Ibrahim Yinka Agbeyinka |
| collection | DOAJ |
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The study examined the impact of external debts on economic growth in Nigeria. Annual time-series from 2001 to 2022, sourced from Central Bank of Nigeria, Nigerian Exchange Group and Securities Exchange Commission, are adopted. The data was subjected to linear regression analysis which was used to estimate the parameters of the model. The findings revealed that external debts services, debts services costs, and exchange rate fluctuations all have a negative relationship with economic growth. This highlights that higher burdens of external debt servicing and greater exchange rate volatility are associated with reduced economic growth. Thus, the study recommends that government should implement robust debt management strategies that prioritize sustainable debt levels and efficient servicing, The government should introduce policies aimed at stabilizing exchange rates to reduce volatility. Moreso, they diversify the economy, especially by promoting sectors less susceptible to external shock, to reduce dependence on external factors that could exacerbate debt and exchange rate vulnerabilities.
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| format | Article |
| id | doaj-art-0c30fcd4f79342e298963803bfc6be8c |
| institution | Kabale University |
| issn | 2756-665X 2756-6897 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | Department of Accounting and Finance, Federal University Gusau |
| record_format | Article |
| series | Gusau Journal of Accounting and Finance |
| spelling | doaj-art-0c30fcd4f79342e298963803bfc6be8c2025-02-12T01:06:36ZengDepartment of Accounting and Finance, Federal University GusauGusau Journal of Accounting and Finance2756-665X2756-68972025-01-015210.57233/gujaf.v5i2.15IMPACT OF EXTERNAL DEBTS ON ECONOMIC GROWTH IN NIGERIA Ibrahim Yinka Agbeyinka0Department of Accounting Science, Walter Sisulu University, Mthatha, South Africa The study examined the impact of external debts on economic growth in Nigeria. Annual time-series from 2001 to 2022, sourced from Central Bank of Nigeria, Nigerian Exchange Group and Securities Exchange Commission, are adopted. The data was subjected to linear regression analysis which was used to estimate the parameters of the model. The findings revealed that external debts services, debts services costs, and exchange rate fluctuations all have a negative relationship with economic growth. This highlights that higher burdens of external debt servicing and greater exchange rate volatility are associated with reduced economic growth. Thus, the study recommends that government should implement robust debt management strategies that prioritize sustainable debt levels and efficient servicing, The government should introduce policies aimed at stabilizing exchange rates to reduce volatility. Moreso, they diversify the economy, especially by promoting sectors less susceptible to external shock, to reduce dependence on external factors that could exacerbate debt and exchange rate vulnerabilities. https://journals.gujaf.com.ng/index.php/gujaf/article/view/318External debtseconomic growthNigeria |
| spellingShingle | Ibrahim Yinka Agbeyinka IMPACT OF EXTERNAL DEBTS ON ECONOMIC GROWTH IN NIGERIA Gusau Journal of Accounting and Finance External debts economic growth Nigeria |
| title | IMPACT OF EXTERNAL DEBTS ON ECONOMIC GROWTH IN NIGERIA |
| title_full | IMPACT OF EXTERNAL DEBTS ON ECONOMIC GROWTH IN NIGERIA |
| title_fullStr | IMPACT OF EXTERNAL DEBTS ON ECONOMIC GROWTH IN NIGERIA |
| title_full_unstemmed | IMPACT OF EXTERNAL DEBTS ON ECONOMIC GROWTH IN NIGERIA |
| title_short | IMPACT OF EXTERNAL DEBTS ON ECONOMIC GROWTH IN NIGERIA |
| title_sort | impact of external debts on economic growth in nigeria |
| topic | External debts economic growth Nigeria |
| url | https://journals.gujaf.com.ng/index.php/gujaf/article/view/318 |
| work_keys_str_mv | AT ibrahimyinkaagbeyinka impactofexternaldebtsoneconomicgrowthinnigeria |