The following are three ways in which public debt can be a burden to the nation:

1. Crowding Out Private Investments:
   Excessive government borrowing within the economy tends to crowd out private investments. This happens when the government competes with private companies in the financial market, depriving them of loanable funds that are necessary for growth.
2. Future Obligation on Taxpayers:
   Borrowed funds may be diverted to white elephant projects that have no direct relevance to economic growth and development. As a result, future generations are left with the obligation to service the debt through taxes, placing a financial strain on taxpayers.
3. Depleting Foreign Reserves:
   When public debt is serviced in hard currency, it depletes the nation’s foreign exchange reserves. This is particularly harmful for import-dependent economies like Nigeria, where foreign exchange is needed to procure critical inputs for industrial production. The reduction in foreign reserves can lead to economic stagnation.