FG Spends N5.28tn on Domestic Debt Service in First Half of 2026

The Federal Government spent N5.28tn servicing domestic debt between January and June 2026, according to figures released by the Debt Management Office. The amount covered interest payments, rentals and principal repayments on government debt instruments.

Data showed that N4.95tn went towards interest and rental payments, while N333.96bn was used to repay the principal on promissory notes.

Where the Money Went

Federal Government bonds accounted for N3.35tn in interest payments during the period. Nigerian Treasury Bills attracted N1.49tn.

The combined interest and rental payments of N4.95tn made up the bulk of the domestic debt service bill. Principal repayment on promissory notes, at N333.96bn, was the smaller portion.

Pressure on Government Finances

The figures highlight the pressure debt payments place on government finances. There are concerns that the rising cost could reduce funds available for infrastructure and essential public services.

What It Means

The DMO data puts the cost of domestic debt service at N5.28tn for the six-month period. The concern is that rising debt payments could crowd out infrastructure and essential public services.