Project Abstract

Abstract
The economic growth of Nigeria between 1989 and 2010 was significantly influenced by external development factors. This study aims to analyze the various external development factors such as foreign direct investment, international trade, official development assistance, and external debt, and their impact on Nigeria's economic growth during the specified period. Through a comprehensive review of existing literature and empirical analysis, this research examines the relationship between external development and economic growth in Nigeria. The findings suggest that external development factors have played a crucial role in shaping Nigeria's economic growth trajectory. Foreign direct investment inflows have positively contributed to economic growth by improving capital formation, technology transfer, and industrial development. International trade has also been a significant driver of economic growth, with exports contributing to foreign exchange earnings and GDP growth. Official development assistance has provided crucial financial support for developmental projects and poverty reduction initiatives, further fueling economic growth in Nigeria. However, the impact of external debt on Nigeria's economic growth has been mixed. While external borrowing has enabled the government to finance critical infrastructure projects and social programs, it has also led to debt servicing burdens and budget constraints. The study highlights the importance of prudent debt management practices to ensure sustainable economic growth in Nigeria. Overall, the research underscores the significance of external development factors in shaping Nigeria's economic growth during the period under review. The study provides valuable insights for policymakers, economists, and researchers to formulate effective strategies for leveraging external development opportunities to foster sustained economic growth and development in Nigeria. By understanding the dynamics of external development and its impact on the economy, Nigeria can harness the potential benefits of foreign investment, trade, aid, and debt to overcome developmental challenges and achieve long-term economic prosperity. In conclusion, the study emphasizes the need for a balanced approach to external development, taking into account the opportunities and challenges associated with foreign investment, trade, aid, and debt. By promoting a conducive environment for external development and implementing sound economic policies, Nigeria can maximize the positive impact of external factors on economic growth and enhance the overall welfare of its population.

Project Overview

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The accumulation of external debt is a common phenomenon of the third World countries at the stage of economic growth and development where the supply of domestic savings is low, current account payment deficit is high and import of capital is needed to increase domestic resources.

The management of Nigeria’s external debt has been a major macroeconomic problem especially since the early 1980s. For many years now, the country’s debt has been growing in spite of the efforts being made by the Government to manage and minimize its crushing effects on the nation’s economy. Such efforts range from the various refinancing and restructuring agreements to debt conversion programme and the deliberate allocation of substantial resources towards servicing the debt. Of particular concern to the authorities, is the heavy debt burden it imposes when compared with the country’s debt service capacity.

In recent years, however, some observers have held different perceptions about Nigeria’s capacity or otherwise to service her debt.