Borrowing is a public finance tool used to stimulate the economy to higher economic growth through productive investment. However, borrowing when not prudently managed will lead to debt problem which leads to slow economic growth and development in a country. Public debt has been a scene in Nigeria since 1980s. This study thus, investigates the impact of public debt on Economic growth and development in Nigeria. Using the Ordinary Least Square regression method, domestic and external debts were used as explanatory variables to check their impact on economic growth in Nigeria. The result confirmed the existence of a significant negative effect of public debt on economic growth, as government borrowing, in the long run, has negative effects on the economy through high debt servicing. Prudent borrowing and judicious use of borrowed funds should be watch word to avoid falling deeper into debt problem.
