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External Debt and Economic Growth in Nigeria: Does the Role of Governance Matter?

This study empirically investigates the effects of external debt on economic growth, and assesses whether effective governance has any influence in this relationship. The scope of the study covers the period from 1996 to 2024. Data are analysed using Autoregressive Distributed Lag (ARDL) Bounds test to cointegration. ADF unit root test shows that all the variables are not stationary at level but at first difference; that is I(1). Findings revealed that, an increase in external debt negatively affects economic growth in the short to long-run in Nigeria. However, foreign exchange reserve (FR) do…

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