The Impact of External Debt Burden

The book titled: The impact of external debt burden on the growth of agricultural and manufacturing sectors of the Nigerian economy dwells on the definitions of external debt as debts incurred by the government through borrowings in the international financial market to support domestic investments and balances of payment deficits, which could not be repaid when they fall due. It also deals with the rational for external debt, causes of external debt, external debt and macroeconomic policies and Nigeria’s debt profile and its consequences for development. When the data collected for the research were subjected to co-integration test by using the Augmented Dickey – Fuller root test, the following results were obtained. It was found that there was inverse relationship between debt service payment and agricultural production and it was also seen that external debt and manufacturing output have a direct relationship which indicates a significant growth on the Nigerian economy. It was recommended that the rise of externally borrowed funds for government projects must be closely monitored in order to ensure that they are applied efficiently and effectively.