Impact of Public Debt and Debt Servicing on Economic Growth in Nigeria (1980–2019)

This study examined the impact of public debt and debt servicing on economic growth in Nigeria (1980-2019). The main objective of the study is to examine the impact of public debt servicing on economic growth in Nigeria. The study used multiple regressions. The variables under consideration were real gross domestic product as the dependent variable while public debt servicing and exchange rate are the independent variables. The ordinary least square (ols) technique was used in estimating the relationship between the dependent and independent variables. The research result showed that public debt servicing has no significant impact on economic growth in Nigeria and thus insignificant variable in determining economic growth in Nigeria. In addition that public debt servicing has negative relationship with economic growth in Nigeria and finally that there is no causality relationship between public debt servicing and economic growth in Nigeria. Based on the findings of the work, the study recommends that there is a need for the government to seek the diversification of the economy away from oil as this will generate more revenue which will reduce the effect of a downtrend in oil revenue which usually calls for debt.