Debt servicing payment: the bane of economic growth in nigeria. [2005-2021]

Abstract

Economic growth, is a global issue that Nigeria is still contending with. This global phenomenon however, is plagued by twin evil called debt and debt servicing. Though debt and debt servicing is not bad in itself, but the management in Nigeria seems to hinder economic growth. This concern has prompted the need for this research to examine the effect of debt servicing on economic growth in Nigeria. Therefore, the specific objectives of this study are; to determine the effect of foreign debt servicing on GDP, and to examine the effect of domestic debt servicing on GDP. Two null hypothesis were tested to provide answers to the concerns posed by the independent variables on the dependent variable, ordinary least square regression was adopted, with the aid of SPSS to analyses our result. with GDP as the dimension for the dependent variable, the research period covered was 2005-2021. This research adopted ex-post facto design, because of the nature of data that is analysed. The choice of this design was due to the desire of the researchers to ensure a free interface of the data without manipulation. However, the findings revealed that both Foreign Debt Servicing and Domestic Debt Servicing have significant effect on GDP. We, therefore, conclude that debt servicing in Nigeria should be managed with utmost sincerity to stimulate economic growth. Suffice it to say that, domestic and foreign debt servicing has become obscenity rather than a blessing to the Nigerian economy, as it has not proven to salvage the economic woes of the Nigeria. We recommend accordingly that, Domestic and foreign debt servicing payments should be managed in such a manner that it would not hinder economic growth of Nigeria.