Nigeria Spent N3.14tn Servicing Domestic Debt in Q1

Nigeria spent N3.14 trillion on domestic debt service during the first quarter of 2026, according to the Debt Management Office (DMO).

The DMO disclosed the figure in its latest domestic debt service report for Q1 2026. The total included N2.97 trillion in interest payments and N169.68 billion in principal repayments.

Government spending on domestic debt service rose steadily throughout the quarter. The government spent N741.82 billion in January, N967.67 billion in February and N1.43 trillion in March.

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

Interest payments made up about 94.6 per cent of total domestic debt service during the quarter. Treasury bills accounted for the largest share, at N1 trillion, while interest payments on Federal Government of Nigeria (FGN) bonds reached N1.96 trillion.

The government also paid N4.24 billion in interest on FGN savings bonds during the period.

According to the DMO, the principal repayment component stood at N169.68 billion and covered repayments on local-currency-denominated promissory notes.

The latest figures show a sharp rise in domestic debt service as the quarter progressed, with March recording the highest monthly amount.

Meanwhile, Nigeria’s public debt increased marginally by 0.01 per cent to N159.35 trillion in Q1 2026.

President Bola Tinubu had earlier said on May 13 that Nigeria would spend $11.6 billion on debt servicing in 2026.

The rising debt service burden highlights the growing cost of managing Nigeria’s public finances and the pressure placed on government resources.

Could rising debt service costs affect the government’s ability to fund development projects?