ABSTRACT

 The study investigated on the effect of external debt on Nigerian economic growth. The objectives of the study are; to assess the impact of external debt on public and private investment within the Nigerian economy, to evaluate the effect of foreign debt on domestic economic growth in Nigerian, to investigate the impact of external debt servicing on investment development in Nigeria and to investigate the impact of foreign debt on exchange rate within the Nigeria economy. To achieve the objectives of the study, expost facto research design was adopted. The researcher adopted secondary data in getting the required information. Data were collected from CBN statistical bulletin. In testing the hypotheses, simple regression analysis was used. The findings revealed that External debt has no significant effect on Private and public investment in Nigeria. The findings further revealed that External debt has no significant effect on domestic economic growth of Nigeria. The researcher that the use of more superior methods to negotiate for fixed interest payment and varying amortization schemes. Nigeria should seek multi-year rescheduling rather than year by year basis. The researcher further recommends that external finance should be used only for projects of highest priority. This is so because it is huge external debt that threw us into the series of economic problem in the first instance