IMPACT OF EXTERNAL DEBT ON ECONOMIC GROWTH OF NIGERIA

The study investigated the impact of external debt on economic growth in Nigeria for the period 2006-2015. Time series data on external debt outstanding, interest rate was used to capture external debt burden. The study set out to test the significant relationship between external debt and economic growth in Nigeria. An empirical investigation was conducted using secondary data: Gross Domestic Product, External Debt outstanding, Interest Rate (financing charges paid on the debt outstanding) from 2006-2015 from CBN Statistical Bulletin. The technique of Estimation employed in the study was Simple Linear Regression Method via the E-VIEW Statistical Package. The results show a significant and positive relationship between external debt outstanding, interest rate (financing charges on the debt outstanding) and the Real Gross Domestic Product.  It was recommended thatexternal debts should be contracted solely for economic reasons and not for social or political reasons, the country should maintain a healthy mix among loans, bonds, grants, aid, portfolio and direct foreign investments to finance its development aspirations, rather than depending heavily on debt.