Many developing economies of the world often rely on borrowing to finance infrastructure to achieve growth amid limited domestic resources, resulting in rising debt-service obligations. This study examines the interactive effects of debt servicing and deficit financing on economic growth in Nigeria from 1981 to 2024 using the Auto-Regressive Distributed Lag (ARDL) model. State the nature and sources of data. The findings reveal a long-run relationship among deficit financing, debt servicing, domestic investment, and interest rates. Deficit financing exerts a positive but statistically insignificant impact on economic growth, whereas debt servicing has a significant negative impact. The combined impact of deficit financing and debt servicing on economic growth is positive but statistically insignificant at 5% level. In the short run, deficit financing positively influences economic growth. The study concludes that the increasing cost of debt servicing diverts resources from productive investments, thereby hindering economic growth in Nigeria, but its combined impact has no significant impact on economic growth. It recommends for the implementation of borrowing ceilings to reduce debt-service burdens and advocates prioritizing investment in productive sectors over consumption expenditure to promote sustainable economic growth.