International records / OpenAlex research

Currency Depreciation Shocks and Sovereign Debt Sustainability: Empirical Insights from Nigeria

Nigeria's external debt over the years has been relatively high, and there has not been a favorable exchange rate recently. This study examined the impact of the exchange rate on sovereign debt sustainability in Nigeria using the Autoregressive Distributed Lag (ARDL) estimation technique. Time series data on an annual basis were used on selected variables: exchange rate, external debt, government expenditure, foreign reserve, external debt servicing, interest rate, and inflation. The results from the long-run and short-run estimation revealed that the exchange rate and government expenditure h…