Modelling of Public Debt Servicing on Nigeria Economic Growth

This study investigates the impact of debt and debt servicing on economic growth in Nigeria. Given the increasing reliance on both domestic and external borrowing to finance budget deficits, the burden of debt repayment has emerged as a critical concern for sustainable development. The research aims to assess the influence of domestic debt servicing (DDS), external debt servicing (EDS), and real exchange rate movements on economic growth, as well as explore the long-run convergence among these variables. Using secondary time series data and an Error Correction Mechanism (ECM), the study conducts unit root and cointegration tests to establish stationarity and long-term relationships. Findings reveal that both DDS and EDS have significant effects on economic performance, with the cointegration results confirming a long-run relationship among the variables. The study recommends a cautious borrowing approach to reduce debt servicing pressure and support sustainable economic growth.