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Abstract The study investigated the effect of public debt on Nigeria’s economic growth using annual time series data from 1980-2018. In collecting, evaluating and interpreting secondary data relating to the study objective, the quantitative and ex-post facto research design was adopted. The Autoregressive Distributed Lag method was applied to assess the short and long-term linkages between economic growth and public debt indicators. The empirical results showed that external debt stock constituted an impediment to long-term growth but a short-run growth-enhancement effect. Domestic debt accretion had a noteworthy positive impact on long-term output growth, while its short-term effect was negative. In the long and short-term, debt service payments led to growth retardation, although the amount of foreign reserves greatly improved growth both in the long and short-run. The diagnostic tests results indicated no problems with non-normality, serial correlation, heteroscedasticity and error in the predicted model specification. The findings of this study suggest that concerted efforts should be made to boost domestic revenue generation and execute fiscal transformations that reduce public debt and deficit financing to a sustainable level, while ensuring that borrowed funds are deployed to support growth through productive and self-liquidating investments in principal sectors of the economy.
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