Nigeria spent N3.14 trillion servicing its domestic debt obligations in the first quarter of 2026, representing a 20.3% increase from the N2.61 trillion recorded in the corresponding period of 2025.
This is according to data from the Debt Management Office (DMO).
The Q1 2026 domestic debt-service bill also rose 37.5% from the N2.28 trillion recorded in the fourth quarter of 2025, highlighting the sharp increase in the government’s debt-service burden at the start of 2026.
Interest payments accounted for N2.97 trillion of the Q1 2026 total, while principal repayments stood at N169.68 billion.
What the data is saying
The Federal Government’s domestic debt service rose from N741.82 billion in January to N967.67 billion in February before climbing 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.
FGN bonds accounted for the largest share of interest payments at N1.96 trillion, comprising 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, comprising N262.57 billion in January, N258.90 billion in February and N481.47 billion in March.
FGN Savings Bonds accounted for N4.24 billion in interest payments during the quarter.
The figures mean that for every N100 spent servicing domestic debt in the first quarter, approximately N95 went towards interest payments, while about N5 went towards principal repayments.
More Insights
The composition of interest payments also changed across the three periods.
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 payments on Nigerian Treasury Bills stood at N742.34 billion, while FGN bonds accounted for N1.32 trillion. FGN Savings Bonds attracted N3.99 billion, while FGN Sukuk accounted for N101.02 billion and the Green Bond N5.59 billion.
In Q1 2026, interest payments on Nigerian Treasury Bills increased to N1.003 trillion, while FGN bonds accounted for N1.96 trillion. FGN Savings Bonds attracted N4.24 billion during the quarter.
The DMO’s figures show that Q1 2026 interest payments increased from N726.38 billion in January to N967.67 billion in February and N1.28 trillion in March.
What you should know
The Federal Government’s domestic debt-service burden has remained substantial as domestic borrowing continues to play an important role in financing government expenditure.
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.
