Economic and Financial Review


Central Bank of Nigeria


Economic Growth, Foreign Debt, Nigeria


In this study, a macro-economic model is used to examine the relationship between external debt and economic growth in Nigeria. The study has established empirically that foreign credit only contributed positively to growth between 1988 and /992 when the resources mobilized externally were used in directly productive activities. However, between 1979 and /987 as well as the period /993-/994, there was a negative relationship between foreign capital and growth. Among other factors, policy inconsistencies, drying up of external assistance and political instability were identified as the main factors that militated against foreign credit-induced growth of the Nigerian economy.

Author Bio

The authors are from International Economic Relations Department of the Central Bank of Nigeria

Publication Title

CBN Economic and Financial Review





Recommended Citation

Ashinze, J. O. & Onwioduokit, E. A. (1996). Economic Growth and Foreign Debt: A Case Study of Nigeria. CBN Economic and Financial Review. 34(1), 523-540.



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