Al-Hikmah University Journal

Despite the low and unstable economic growth rate, the Nigerian external debt has been on the increase. This study therefore seeks to examine the determinants of external debt in Nigeria using Auto Regressive Distributed lag and Error Correction Model approaches. Data from 1981 to 2020. The result of the bound test indicates there is longrun relationship between the variables studied. The estimation results shows that Military expenditure, debt servicing and deficit significantly and positively affect debt while corruption and oil revenue have negative and significant effect on external debt. The error correction coefficient is correctly signed and significant. The study therefore recommends that appropriate measures should be put by the government to invest the money borrowed in infrastructural and industrial sector development. This will reduce deficit corruption and   curtail insecurity.