Nigeria Spends N3.14tn on Domestic Debt in Q1

The Federal Government spent N3.14 trillion on domestic debt service in the first quarter of 2026, with interest payments making up most of the total.

The Debt Management Office (DMO) disclosed the figures in its latest domestic debt service report. Of the amount, N2.97 trillion went towards interest payments, while N169.68 billion covered principal repayments.

Government spending on domestic debt service increased each month during the quarter. The government paid N741.82 billion in January, followed by N967.67 billion in February. Spending then climbed sharply to N1.43 trillion in March.

The March figure was 47.7 per cent higher than February’s payment and 92.7 per cent above January’s figure. It also accounted for almost half of the N3.14 trillion domestic debt service recorded between January and March.

Interest payments represented about 94.6 per cent of total debt service during the period. Treasury bills accounted for N1 trillion, while interest on Federal Government bonds reached N1.96 trillion. The government also paid N4.24 billion in interest on FGN savings bonds.

Meanwhile, principal repayments stood at N169.68 billion, covering repayments on local-currency-denominated promissory notes.

The rising cost of domestic debt service adds pressure to government finances as Nigeria continues to manage its debt obligations. The country’s public debt also rose marginally by 0.01 per cent to N159.35 trillion in the first quarter.

President Bola Tinubu had earlier said Nigeria would spend $11.6 billion on debt servicing in 2026, highlighting the scale of the country’s debt burden.

How can Nigeria reduce its growing debt service costs while funding essential development?