Abstract
Following the rising spate of the debt profile of Nigeria and the fluctuating trend in her macroeconomic indicators, this study critically examined the impact of external debt on economic growth in Nigeria in the period, 1985 to 2019 by examining the causality between external debt stock and economic growth in Nigeria and identify the impact of external debt servicing on economic growth in Nigeria. The study employed the Harrod-Domar theory of economic growth and the Two-Gap model as theoretical framework to explain the impact of external debt on economic growth in Nigeria. The study made use of secondary data sourced from World Development Indicator 2019. Ordinary least square (OLS) technique was adopted for the regression analysis. The data were analyzed with the aid of e-view software (9th edition). The result showed that external debt has negative and insignificant impact on economic growth in Nigeria. Therefore, the study recommended the use of tax revenue to finance public deficit, encouragement of foreign direct investment and domestic investment through improvement in infrastructural facilities and an enabling environment devoid of political and economic instability.
 
 JEL: E32, E41, F33, F34, F43
 
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Highlights
Every nation aims to attain and sustain economic growth for the betterment of her citizenry and the economy as a whole
5.1 Conclusion In determining the impact of external debt on economic growth in Nigeria, the study concluded that external debt has negative and insignificant impact on economic growth in Nigeria
In identifying the impact of external debt servicing on economic growth in Nigeria, the study found out that the probability of external debt servicing is less than five percent and with negative sign
Summary
Every nation aims to attain and sustain economic growth for the betterment of her citizenry and the economy as a whole. An economy may require an enormous amount of capital, which can be sourced from both internal or domestic and external or foreign means. For third world countries and developing economies who are faced with the paucity of funds to finance major infrastructural projects in their countries, borrowing becomes inevitable (Olasode and Babatunde, 2016). They maintained that the developing countries usually have to seek for funds from internal and external sources to supplement their revenues from taxes and earnings from other means, which are usually low, relative to developed nations
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