RISING EXTERNAL DEBT AND EXCHANGE RATE: EMPIRICAL EVIDENCE FROM NIGERIA

The fluctuating exchange rate and massive debt burden of Nigeria necessitates a thorough investigation trends in her foreign levels, its underlying causes, implications for economic growth. This study, therefore, investigated the impact rising external on with annual data from 1980 to 2021. motivation this study was premised inculcating government spending inflation into traditional analysis volatility using sourced CBN statistical bulletin (2020), DMO WDI (2021). obtained were analyzed Augmented Dickey-Fuller (ADF) unit root test, Autoregressive Distributed Lag (ARDL) technique, stability diagnostic test analysis. Based outcomes preliminary analysis, results show that has negative but insignificant effect Nigeria. Also, positive significant In light these findings, concluded recommended Nigerian and/ or Central Bank should ensure all borrowed funds are effectively channelled viable projects will yield returns service debts as well pay up at maturity, which puts pressure market short term consequently fluctuations terms depreciation naira country.
 Keywords: External stock, Debt payment, Inflation rate, Exchange Nigeria.
 JEL Classifications: E31, 34, 43, F31.