The public sector clothed in federalism plays a central role in influencing macroeconomic environment. Therefore, this study aims at exploring Nigerian fiscal federalism to ascertain the impact of Nigerian public debt management paradigm on economic growth. Relevant data were obtained from CBN Annual Report and Statement of Account (Draft) and CBN Statistical Bulletin: Financial Statistics. SPSS version 16.0 was employed to run – regression analysis, correlation coefficient, coefficient of determination and Analysis of Variance ANOVA as well as standard error-test. It was found that there is no correlation between Nigerian fiscal relation and economic growth, Nigerian public debt management model does significantly influence economic growth and that there is no correlation between Nigerian economic growth and Foreign Direct Investment attraction. It is therefore, recommended that the public sector should holistically appraise economic growth determinants in order to bring Nigeria back to a pragmatic approach towards speedy economic recovery from recession and to revamp the economy through judicious application of every loan obtained.