This challenge informs the justification of conducting this study to assess the trends and implication of domestic debts on the economic development of the nation. To achieve the central idea of the paper, secondary data was collected from Central Bank of Nigeria, on Domestic Debt and development. The data collected was used to make a comparative analyses of Nigeria’s domestic debts profile from 1970-2005, 36 years to be precise. The choice of the period was informed by the availability of data for adequate analysis to be carried out. Also, it was in the 1970s (especially in the late 1970s) that Nigeria's debt started increasing rapidly, thus causing a lot of concern. From this analyses, policy implications were deduced, which further gave rise to the development of a policy direction intended to further the course of enhancing effective debt management and sustainable growth in Nigeria.
Keywords: Domestic debts, debt management, sustainable development