Inter-Temporal Perspective of the External Borrowing Effect on Capital Accumulation in Nigeria

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This study examines the impact of external borrowing on capital accumulation in Nigeria, indicating significant long-term effects.

External debt positively influences gross fixed capital formation in the long run, while negatively impacting it short-term.
From 1981–2023, domestic debt showed an insignificant negative effect on capital accumulation in Nigeria.
The autoregressive distributed lag (ARDL) method was used to analyze the relationship between external borrowing and capital accumulation.
While external borrowing is vital for investment, current debt servicing methods are deemed unsustainable and require new saving policies.

Uchenna et al. (2025) studied this question.

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