This study examined the impact of domestic credit on economic performance in Nigeria from the period 1991-2022. The study utilized ARDL bound test approach to analyze the result. Gross domestic product, unemployment rate and interest rate were used as the measure for economic performance indicators, while net credit to the private sector and net credit to the public sector were adopted as measure of domestic credit. The findings showed that gross domestic product had positive but non-significant impact on both credit to the private and public sectors in Nigeria. While unemployment rate had negative and nonsignificant impact on both credit to the private and public sectors in Nigeria. The study recommended that, government and its agencies must take proactive steps in ensuring that prudent level of public debt, regular debt sustainability analyses, adequate monitoring of credit channels are maintain within the financial system, so as to achieve a balance between facilitating credit availability for economic growth and avoiding excessive credit expansion, which could lead to financial instability.