DMO: Nigeria spends N5.28 trillion on domestic debt service in H1 2026

Nigeria spent N5.28 trillion servicing domestic debt in the first half of 2026, with interest and rental payments accounting for N4.95 trillion of the total.

This is according to data released by the Debt Management Office (DMO) on Thursday.

The DMO’s actual domestic debt service figures show that the Federal Government also paid N333.96 billion in principal repayments on promissory notes between January and June.

The figures highlight the cost of servicing domestic borrowing as Nigeria continues to manage rising debt obligations alongside spending needs for infrastructure and other government priorities.

Domestic interest payments reach N4.95 trillion

Interest and rental payments on domestic debt instruments totalled N4.95 trillion in the six months, accounting for the bulk of the N5.28 trillion spent on domestic debt service.

• Federal Government bonds were the largest contributor, attracting N3.35 trillion in interest payments and accounting for a substantial share of the total. Nigerian Treasury Bills (NTBs) followed with N1.49 trillion.
• Interest payments on Federal Government bonds stood at N462.44 billion in January, rose to N707.25 billion in February and reached N792.34 billion in March.
• Payments on the bonds declined to N530.84 billion in April and N332.49 billion in May before rising to N525.05 billion in June.
• Treasury bill interest payments totalled N1.49 trillion, with March accounting for approximately N481.47 billion, the highest monthly amount for the instrument during the period.

The government also spent N92.29 billion on FGN Sukuk rentals and N8.90 billion on FGN Savings Bonds, while green bond interest payments amounted to N5.56 billion.

The figures show that conventional Federal Government bonds and Treasury Bills made up most of the government’s domestic interest burden during the first half of the year.

Principal repayments add N333.96 billion

Beyond interest and rental payments, the Federal Government spent N333.96 billion on principal repayments for promissory notes during the period.

• The payments varied considerably by month, with March and June recording the largest amounts. March repayments stood at N154.23 billion, while June payments reached N136.96 billion.
• Local-currency-denominated promissory notes accounted for N263.27 billion of the total, while foreign-currency-denominated promissory notes accounted for N70.69 billion.
• Monthly domestic debt service, including both interest and principal, also fluctuated over the period. March recorded the highest total at N1.43 trillion, followed by February at N967.67 billion and June at N811.62 billion.
• January’s total stood at N741.82 billion, while April recorded N765.19 billion. May had the lowest monthly domestic debt service during the period, at N567.16 billion.

The variation reflects differences in the timing and size of interest payments and principal repayments across the government’s domestic debt instruments.

Debt service costs remain a fiscal concern

The latest figures add to concerns about the resources required to service Nigeria’s growing debt obligations.

Nairametrics previously reported that Nigeria incurred N10.61 trillion in additional debt-service costs between June 2023 and December 2025, approximately N4.14 trillion more than the N6.47 trillion spent on strategic infrastructure development over the same period.

The publication also reported that the Federal Government borrowed N11.9 trillion between June 2023 and December 2025, while arguing that economic reforms had created fiscal space and prevented even higher borrowing.

Nigeria’s total debt service rose to about N16 trillion in 2025, driven by higher domestic interest payments and sustained external obligations.