An in-depth study has been given to the relationship between debt accumulation and economic and sustainable development in development literature. While some scholars have maintained that the relationship between debt accumulation and economic transformation—whether positive or negative—is durable along a country’s growth path, others have argued against it. Between 1999 and 2022, this study examines the effect of governmental debt on Nigeria’s economic growth. Data on economic development proxies were used to establish the relationship and level of significance. The Johansen maximum likelihood regression method was employed because it allows for multiple co-integrating associations between the variables. The results suggest a positive correlation between the total debt profile and GDP per capita. The percentage of the population living below the poverty line, the total debt, and the literacy rate were not statistically significant over the study period. Nigeria’s influence on the economy and long-term prosperity of the nation was detrimental over the studied period. The findings also advise the Nigerian government to investigate the reasons why public debt does not increase GDP per capita in order to spot and address bottlenecks. This report recommends that improvements in policy and institutional performance, notably in the areas of economics and debt management, as well as improved fiscal positions and financing from donors and creditors, be considered.
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Volume 5 No 2