Domestic Debt Burden and Economic Growth in Nigeria (1981 - 2014)

Abstract

The paper investigates domestic debt burden and economic growth in Nigeria from 1981 to 2014. Ex-post facto research design was adopted in this study with data obtained from Central Bank of Nigeria statistical Bulletin, publication from National Bureau of Statistics and annual report from Debt Management Office. Regression analysis of ordinary least square (OLS) was used to analyse secondary data obtained. The results of ADF, Co-integration and Johansen Juselius showed that domestic debt contributes to growth rate of Gross Domestic Product (GDP). The study therefore recommends that domestic debt should be well managed and spends on long-term developmental project that would impact positively on the welfare of the citizens.