Domestic Debt and the Nigerian Economy

The study investigates the empirical relationship between domestic debt and economic growth in Nigeria. Using OLS regression techniques and the time series data from 1986 – 2005, the study explored the relationship between domestic debt and economic growth in Nigeria. Our result shows that domestic debt has affected the growth of the economy negatively. In the light of the findings, the study recommend that Government domestic borrowing should be discouraged and that increasing the revenue base through its tax reform programames should be encouraged.