Nigeria spends N3.14 trillion on domestic debt service in Q1 2026, up 20.3%
By Aboki Forex —
Nigeria spent N3.14 trillion servicing its domestic debt in the first quarter of 2026, a 20.3% jump from the N2.61 trillion recorded in the same period of 2025. The Debt Management Office (DMO) released the figures.
The bill also rose 37.5% from the N2.28 trillion spent in the fourth quarter of 2025. That sharp increase shows the growing weight of debt service on the federal budget at the start of 2026.
Interest payments take the biggest share
Interest payments accounted for N2.97 trillion of the Q1 2026 total, while principal repayments stood at N169.68 billion. In Q1 2025, interest payments were N2.37 trillion and principal repayments totalled N241.91 billion.
For every N100 spent servicing domestic debt in Q1 2026, approximately N95 went to interest payments and about N5 went to principal repayments.
Monthly figures show the burden rising through the quarter. Domestic debt service rose from N741.82 billion in January to N967.67 billion in February, then climbed to N1.43 trillion in March. Interest payments stood at N726.38 billion in January, N967.67 billion in February and N1.28 trillion in March, bringing the three-month total to N2.9692 trillion.
Bonds and treasury bills dominate
FGN bonds attracted the largest share of interest payments at N1.96 trillion. That comprised N1.90 trillion from FGN bonds and N61.97 billion from the FGN US Dollar Bond.
Nigerian Treasury Bills attracted N1.003 trillion in interest payments, split across January (N262.57 billion), February (N258.90 billion) and March (N481.47 billion). FGN Savings Bonds accounted for N4.24 billion in interest during the quarter.
The mix has shifted from a year earlier. In Q1 2025, Nigerian Treasury Bills attracted N960.72 billion in interest, while FGN bonds accounted for N1.40 trillion, including N67.99 billion from the FGN US Dollar Bond. FGN Savings Bonds attracted N2.72 billion.
By Q4 2025, interest on Treasury Bills stood at N742.34 billion, FGN bonds attracted N1.32 trillion, FGN Savings Bonds N3.99 billion, FGN Sukuk N101.02 billion and the Green Bond N5.59 billion.
Total public debt still rising
Nigeria's total public debt rose marginally to N159.35 trillion as of March 31, 2026, from N159.28 trillion at the end of December 2025, according to the DMO. Total public debt stood at N87.38 trillion as of June 30, 2023, shortly after President Bola Tinubu assumed office.
The Q1 2026 debt-service figures show that interest costs continue to constitute the overwhelming share of the Federal Government's domestic debt-service obligations. With revenue still under pressure, the rising interest burden means a larger portion of future borrowing will go toward servicing debt, leaving less room for spending on infrastructure and other priorities.