Impact Of Economic Growth on Debt Service in Nigeria

Abstract

This paper is designed to formulate a Model that best explains Public Debt Servicing using Nigeria as a case study over the period of 30 years (1992-2022). First, we explore the literature of the debt and debt servicing. Second, we develop a model to capture factors (i.e variables) influencing public debt servicing. Then, we estimate it empirically. Unlike the previous studies, we were concerned with the real rather than nominal public debt servicing. Multiple regression was used as the statistical tool for the analysis. The Ordinary least square was the estimation method used. Also the regression assumption was highlighted, tests were carried out to detect violation of the assumption and remedial measures for violation were done. To conclude, it was found that export and public debt are the variables that best explains public debt servicing.

Key words:   Economic growth, Debt service.