Impacts Of External Debt Servicing on Poverty and Unemployment in Nigeria

This study examined the impact of external debt servicing on poverty and unemployment rates in Nigeria. It focused on the intricate relationship between fiscal obligations to foreign creditors and domestic economic outcomes. External debt servicing often diverts resources from critical social and economic development sectors, exacerbating poverty and unemployment. The research employed a mixed-method approach, combining quantitative analysis of macroeconomic indicators with qualitative assessments of policy implications. The Auto Regressive Distributive Lag (ARDL) was used as the main estimation technique. From the findings, results revealed that the impact of external debt servicing on poverty and unemployment rates in Nigeria, were statistically significant and positive. This shows that high external debt servicing by the Nigerian government limits her spending on social infrastructure and job-creating initiatives, further entrenching poverty and unemployment. The study recommends debt restructuring, prudent borrowing, and investment in economic diversification to mitigate the adverse effects of external debt servicing. By addressing these challenges, Nigeria can achieve sustainable development and improve socio-economic conditions for its citizens. Keywords: External Debt servicing, Poverty, Unemployment.