Foreign Debt and Economic Development in Nigeria (2015 - 2020)

Abstract

This study carried out an empirical analysis of foreign debt and economic development in Nigeria covering the period 2015 – 2020. The study used an ex post facto research design, which is based on examining the independent and dependent variables after events have already occurred and using data that is already available in order to determine the relationship between the variables. In order to gather data for this study, a documentary method based on the examination of documents and materials was used. Documentary methods are the procedures used to classify, examine, and analyze documents, whether they are in the public or private domain. To analyze the data generated from this study, the study relied on qualitative descriptive analysis. The major findings of the study are that there are other intervening variables that affect economic growth in addition to health and poverty indicators, external debt is viewed as being harmful to a nation's ability to advance economically, and given the impact of debt to the living standard of the Nigeria people, health expenditure on economics, it could be deduced that even though health expenditure increases, it could have a negligible impact on economic growth if it is not maximized effectively to produce improved health outcomes. It is therefore the recommendation of the study that government should diversify the nation's export base so as to increase export earnings and promote industrialization in order to reduce import dependency as a high exchange rate will make our goods more attractive in the foreign market and will increase foreign exchange earnings.