1. ENIOLA J. OMONIYI - Accounting Department, Joseph Ayo Babalola University, Nigeria.
2. AJIKE O. GODWIN - Economics Department, Adeleke University Ede, Nigeria.
3. OWOEYE T PETER - Department of Education, Faculty of Social Sciences, University of Sunderland, United Kingdom.
4. KOLAWOLE T OLABODE - Department of Sociology, Federal University of Oye-Ekiti, Nigeria.
5. ABERE O. BENJAMIN - Economics Department, Edo State University, Nigeria.
6. ADELAKUN O JOHNSON - Economics Department, FSS, National University of Lesotho, Lesotho.
7. ABIOLA OYEKAN - Agricultural Economics Department, University of Ibadan.
The study delves into the dynamic relationship between external debt, foreign direct investment (FDI), and poverty incidence in Nigeria. It aims to present empirical evidence on the influence of external debt and FDI on Nigeria's pursuit of sustainable development and poverty reduction. The research utilized annual secondary data spanning from 1981 to 2019 sourced from the World Bank's World Development Indicator (WDI), the Statistical Bulletin, and the Central Bank of Nigeria (CBN). A vector autoregressive model was employed to discern the interaction effects among the three variables (external debt, FDI, and poverty level represented by real consumption expenditure). The results revealed a significant negative impact of a oneSD shock in external debt on periods 1 through 6, with the response gradually increasing in periods 7 and 8. Furthermore, the findings established that a one per cent increase in FDI led to a sustained, positive impact on poverty levels over time. Consequently, the study concludes that FDI plays a crucial role in Nigeria's endeavors to achieve sustainable development goals and alleviate poverty.
External Debt, Foreign Direct Investment, Poverty Level, and A Vector Autoregressive Model.