Regression analysis of the effect of public debt on the economic growth of Nigeria.

Abstract

This study focused on the effect of public debt on the economic growth of Nigeria from 2004-2021. The specific objective of the study was to ascertain the regression analysis of the effect of public debt on economic growth in Nigeria and other objectives are to: investigate the impact of external debt on the economic growth of Nigeria, determine the impact of foreign exchange rate on the economic growth of Nigeria and examine the impact of interest rate on the economic growth of Nigeria. The researcher adopted ex-post facto research design and regression analysis was used in analyzing the time series data generated through secondary data source. The study found that public debt has a negative effect on economic growth, exchange rate has positive relationship with economic growth in Nigeria and interest rate does not have significant effect on the economic growth of Nigeria. Based on the findings the study concludes that public debts are necessary to meet shortfall internal resources, and stimulate the economy. Based on the finding the study recommends as follows: government should aggressively pursue the process of diversification of the economy. This will result in buoyant and robust economy which will reduce the public debt.