The Federal Government spent N3.14 trillion on servicing its domestic debt in the first quarter of 2026, with interest payments accounting for the overwhelming majority of the expenditure, according to the Debt Management Office (DMO).
The figure was contained in the DMO’s latest domestic debt service report for the quarter and comprised N2.97 trillion in interest payments and N169.68 billion in principal repayments.
The data showed that domestic debt servicing increased steadily throughout the three-month period, rising from N741.82 billion in January to N967.67 billion in February before reaching N1.43 trillion in March.
The March figure represented a 47.7 per cent increase from the N967.67 billion recorded in February and was 92.7 per cent higher than the N741.82 billion spent in January.
Interest payments dominate debt servicing
Interest payments accounted for approximately 94.6 per cent of the total domestic debt service during the quarter, highlighting the significant cost of servicing the Federal Government’s domestic borrowing.
According to the DMO, Treasury Bills accounted for N1 trillion of the interest payments, while interest on Federal Government of Nigeria (FGN) bonds amounted to N1.96 trillion.
The government also paid N4.24 billion in interest on FGN savings bonds during the period.
The principal repayment component stood at N169.68 billion and comprised repayments on naira-denominated promissory notes, according to the debt office.
The figures showed a sharp increase in domestic debt servicing towards the end of the quarter, with the N1.43 trillion recorded in March accounting for nearly half of the N3.14 trillion spent between January and March.
Public debt rises marginally
Meanwhile, Nigeria’s total public debt rose marginally by 0.01 per cent to N159.35 trillion in the first quarter of 2026.
The latest domestic debt service figures come against the backdrop of the Federal Government’s wider debt obligations and growing pressure to manage borrowing costs.
On May 13, President Bola Tinubu said Nigeria would spend $11.6 billion on debt servicing in 2026.
The latest DMO figures highlight the increasing share of government resources going towards debt servicing, particularly interest payments, as Nigeria continues to manage its domestic and overall public debt obligations.
