Debt Servicing and Economic Growth in Nigeria: Moderating Effect of Corruption

Authors

  • UGOCHUKWU NNAMDI OTIKO Department of Accounting, Veritas University Abuja
  • Iyere Samuel IHEONKHAN Department of Accounting, Faculty of Administration Nasarawa State University, Keffi

Abstract

The aim of this study was to examine the effect of debt servicing on economic growth in Nigeria with corruption as a moderator. Debt servicing was proxy by foreign and domestic debt servicing, while economic growth was proxy by gross domestic product. Also, corruption was measured using the corruption perception index of the Transparency International. This study adopted ex post facto research design and relied on documentary evidence from CBN statistical bulletin from 1990 to 2020. The study used multiple regression analysis technique for the purpose of data analysis after both time series tests such as unit root, cointegration and normality were conducted. The result of this study showed that foreign debt servicing has significant effect on GDP, while the domestic debt servicing does not have any significant effect on GDP in Nigeria. The study also, showed that corruption as a moderator a negative indirect effect on relationship between debt servicing and economic growth in Nigeria. Based on the findings, the study concluded that debt servicing can be used as a predictor of economic growth in Nigeria. Therefore, the study recommended that Government should regularly service her debts as non-service could amount to debt covenant violation charges which could mean more cash outlay for the government.

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Published

2022-08-29

How to Cite

OTIKO, U. N., & IHEONKHAN, I. S. (2022). Debt Servicing and Economic Growth in Nigeria: Moderating Effect of Corruption. Baze University Journal of Entrepreneurship and Interdisciplinary Studies, 1(1). Retrieved from http://koha.bazeuniversity.edu.ng/index.php/bujeis/article/view/14

Issue

Vol. 1 No. 1 (2022): Baze University Journal of Entrepreneurship and Interdisciplinary Studies

Section

Articles

License

© 2022, Centre for Foundation and Interdisciplinary Studies, Baze University, Abuja

 

Electronic Publication 2022

 

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