Implication of Fiscal Deficit Financing on External Debt  Sustainability in Nigeria

Implication of Fiscal Deficit Financing on External Debt Sustainability in Nigeria

Olayide Olayinka Olaoye

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Sunday O. Odumeru

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α Ajayi Crowther University

Implication of Fiscal Deficit Financing on External Debt Sustainability in Nigeria

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Abstract

The accumulation of debt for developmental purpose has failed to yield the desirable transformation. So, the study investigated the impact of fiscal deficit financing on external debt sustainability in Nigeria. The dual gap theory formed the basis of the study. Using annual time series data from 1981 to 2020 and the Autoregressive distributed lag technique, the study found that lagged external debt, exchange rate and fiscal deficit significantly impacts external debt servicing in Nigeria. Therefore, it was recommended that government should use external loans productively; public policy should be geared towards export promotion; and interest rate should be very low.

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No external funding was declared for this work.

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The authors declare no conflict of interest.

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How to Cite This Article

Olayide Olayinka Olaoye. 2026. \u201cImplication of Fiscal Deficit Financing on External Debt Sustainability in Nigeria\u201d. Global Journal of Human-Social Science - E: Economics GJHSS-E Volume 22 (GJHSS Volume 22 Issue E7): .

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GJHSS Volume 22 Issue E7
Pg. 35- 43

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Journal Specifications

Crossref Journal DOI 10.17406/GJHSS

Print ISSN 0975-587X

e-ISSN 2249-460X

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GJHSS-E Classification: DDC Code: 346.42022 LCC Code: KD1554

Submission ReceivedOctober 14, 2022
Peer Review Double Blind
Handling Editor
Accepted October 21, 2022
Published January 16, 2023

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February 9, 2023

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