This study examines over-incarceration not merely as a criminal justice concern but as a significant economic issue affecting the nation at large. It analyses the direct and hidden economic costs imposed on the State’s exchequer, including infrastructure, administrative, medical, and opportunity costs. The research adopts a mixed methodology combining doctrinal analysis with empirical (non-doctrinal) research based on stratified random sampling of 135 respondents. Statistical tools such as percentage and average methods were employed for analysis. The empirical findings reveal a broad consensus that over-incarceration burdens national finances. However, the hypothesis that recidivism constitutes the primary hidden economic cost was rejected, with respondents identifying loss of family income and inter-generational economic impact as the most significant hidden cost. The study concludes that continued reliance on incarceration is economically unsustainable and calls for greater emphasis on cost-effective and reform-oriented alternatives.