This study investigatedthe impact of deficit financing on economic development in Nigeria from 1980-2017 using data from Central Bank of Nigeria statistical bulletin (2018). The study adopted the Ordinary Least Square (OLS) method estimation technique to conduct quantitative analysis. The results of this study were analyzed using economic a priori criteria, statistical criteria and econometric criteria. Findings as analyzed in the empirical result of aggregate model revealed that budget deficit and gross fixed capital formation are negative and insignificant in impacting on economic development. Findings also revealed that inflation and labor force are positive and significant in impacting on economic development. The study recommends that government should mobilize funds from the surplus spending units to the deficit spending units to boast economic development in Nigeria. The study also recommends that there is need for government to set up monitoring teams that will make sure that the budget is well and carefully implemented to avoid mismanagement of funds.