Dynamic relationship between rising public debt and economic stability: an assessment of Nigeria economy

Abstract

The consistent increase in public debt of Nigerian economy has raised concerns regarding its impact on economic stability. This paper examines the dynamic relationship between Nigeria's rising public debt and its economic stability by analyzing empirical data and existing literature. The study emphasizes on the key macroeconomic indicators affected by debt accumulation, such as inflation, GDP growth, investment, and exchange rates. The findings suggest that while public debt can drive short-term economic growth, excessive borrowing without sustainable fiscal policies can undermine long-term economic stability.