Project Abstract

             ABSTRACT

This study work analyze empirically the causes and the impact of external debt in Nigerian between the period of 1980 to 2009/ the main objectives of this project work is to find out the causes of external debt and the impact of external debt on Nigerian economy. In trying to analyses the project, the researcher formulated. Two null hypothesis. In the first null hypothesis (Ho), the researcher states that nets export is not a significant cause of external borrowing in Nigeria. In the second null hypothesis (H02), it states that external debt has no significant impact on Nigerian economy. In estimating this, the researcher adopted econometrics by applying ordinary least squares (OLS). It was found out that next export is not a significant caused of external borrowing. also, that external debts has no significance impact on Nigerian economy. Hence, null hypothesis was accepted in both hypothesizes. Therefore, the researcher concluded that external borrowing has not been playing a significant role in stimulating economic growth in Nigeria. Also, that terms of trade has not been favourable over the years. The researcher thus recommends that government should sources for another means of financing her budget deficit like diversIFying her economy so as to open more means of generating revenue. Also, government should provide subsidies and liberalizing credit export oriented industries.

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