August 21, 2025Deleted JournalOpen Access

Public Debt and Economic Growth in Nigeria: An Empirical Analysis (1986-2024)

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Empirical analysis shows public debt affects growth in Nigeria, indicating a need for prudent management.

Domestic and external debts significantly support economic growth over the long term, enhancing productive investments.
In the short run, new borrowing helps boost growth, but servicing debts can slightly decrease output and financial flexibility.
Granger causality reveals bidirectional causality between domestic debt and growth, and unidirectional effects from external debt to growth outcomes.
Prudent debt management is crucial, especially addressing external debt servicing costs to sustain economic growth benefits.

Hassan et al. (2025) studied this question.

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