This study is meant to examine the effect of external debt on gross domestic product using econometric analysis. The research revealed that Nigeria’s external debt has contributed immensely to the gross domestic product. This has affected investment on the domestic productivity and hence invariably affected the economic growth and development. Due to the macroeconomics distortion in the economic growth and development like the problem of unemployment, inflation, balance of payment disequilibrium and a lot of others. The researcher gave recommendation in view of the research finding such as (1) The need for the improvement of domestic social transformation to pave way for a social self-reliant economy by developing science and technology. (2) Government should de-emphasis export led growth based on foreign exchange earning from primary product. (3) Government should embark on policy measure to ensure full employment. (4) Mobilization of human and materials resources to achieve the objective of sustain growth towards externally source fund are channeled into productively activities.