Examining the Implications of Public Debt for Job Creation and Financial Security in Nigeria

This study delves into the complex relationship between public debt and job creation in Nigeria, focusing on how increasing levels of public debt affect employment rates and the broader financial security. Using the documentary research method, this study examines the implications of public debt (PD) on job creation and financial security in Nigeria. The findings of the study revealed that while public debt can potentially stimulate job creation when used effectively, an increase in public debt can lead to a high unemployment rate owing to crowding out of private investment effects that hamper higher labour force participation rates in the labour market adjustments influenced by fiscal policies and exacerbating fiscal deficits. The study recommends, among other things, that governments at all levels in Nigeria should embrace fiscal policies that prioritise sustainable debt levels where public debt is allocated strategically to fund projects and programmes (education and vocational training) with high economic returns, particularly in infrastructure development, to directly stimulate economic activity and foster job creation