External Debts and Nigeria’s Economic Development

Abstract

The impact of different types of external debt on economic development of Nigeria was studied using multiple regression technique. It was found that while London Club debts were negatively significant, only past values of gross domestic product ( GDP), taken as independent variable, was found to be positively significant. It is therefore recommended that Nigeria should not only be careful in taking new loans but make sure that any one taken is channelled to productive uses.

Keywords: External debt; economic development; economic growth; crowding out; debt problem.