Determining the Macroeconomic Factors of External Debt Accumulation in Nigeria: An ARDL Bound Test Approach

Nigeria is witnessing a continuous increase in external debt stocks despite a bitter three decades experience in this regard, resultant effects of high interest rates, low savings, weak exchange rates and persistent budget deficits. This study using time series data looked into this phenomenon adopting the ARDL bound test. These factors were found to have had a statistically significant relationship in the long run and adjustment mechanism for the short run was found to be very weak. It is thus instructive government concentrates on external debt signing and management so as to avoid the ugly experience of the past.