This study investigated the effects of government expenditure on economic growth in Nigeria, with focus on the moderating role of debt servicing by the government from 1990-2024. This study made use of the Autoregressive distributed lag model to analyze this relationship. The results obtained from the ARDL estimations showed that in the short run the interaction between debt servicing and government expenditure had a negative and significant effects on real GDP as an indication that a higher debt obligations reduce growth benefit of fiscal expenditure. Furthermore, total revenue to GDP had positive and significant effect and exchange rate as well as oil price fluctuations showed short run dynamics. The results from the long run estimation revealed that debts servicing in combination with government spending continue to constrain growth. But total revenue, exchange rate and oil prices contribute positively to economic performance. However, the study concludes that debt servicing in relation to government expenditure has a crowding out effect on economic growth in Nigeria which stress the need for prudent and monetary coordination. The study recommends priority in the productive investment of borrowed funds and effective revenue mobilization while maintaining macroeconomic stability in order to foster sustainable economic growth