ABSTRACT
The main objective of this chapter is to assess the external position of the Nigerian economy during the period covered by this book (1960-97). Three important and highly connected questions are regularly asked in assessing the severity of external imbalances: Are the current account imbalances sustainable? Is the debtor country solvent? Are the current account imbalances excessive? 1 Given the historical experience of recurring current account deficits and the broad increase in debt to GDP ratio, answers to these questions are important in the context of the Nigerian economy.
