PERILS OF DEBT-FINANCING: EXTERNAL DEBT AND ITS IMPLICATIONS ON NIGERIA’S ECONOMIC GROWTH

This paper examines the impact of external debt on growth Nigerian economy between 1990 and 2018 with a view to drawing key implications for management economy. Having ascertained that variables study are non-stationary in levels but stationary after first differencing also being cointegrated, error correction model (ECM) technique was used analysis.The pairwise Granger causality test results show while one-way causal relationship exists fiscal balance running from debt, no real output. From short run ECM long models, it found statistically insignificant positive output both run. The statistical properties estimated is consistent, efficient feasible forecast policy making.The recommendations emanated suggest government should improve governance, entrenching transparency professionalism country’s larger public finance be made viable instrument economic growth.