Macroeconomic Volatility and its Significance to the Rising External Indebtedness of Nigeria

The motivation of this study has been to identify the effects multidimensional perspectives macroeconomic volatility on growth external debt in Nigeria from 1970 2018. Methodologically, Auto-Regressive Distributed Lag (ARDL) model and TodaYamamoto causality approach were adopted. For purpose understanding perspective volatility, was disaggregated into three different which are: outcomes, domestic sources, sources. Findings suggest that while outcomes exclusively affects long-term, sources very substantial short-term. Furthermore, result indicates bidirectional nexus between debt. Also, irregular variations Nigerian political space, unanticipated disease outbreaks, 1986 recession country all significantly worsened country’s situation. Thus, recommended amongst others since developing countries such as cannot do away with demand for finance its economic growth, it is also important count cost financing provides even if faster actually realise.