Nigeria's Domestic Debt Servicing Hits N5.28 Trillion in 2026

In the first half of 2026, Nigeria incurred N5.28 trillion in domestic debt servicing costs, as reported by the Debt Management Office (DMO). Of this total, N4.95 trillion was spent on interest and rental payments.

Additionally, the Federal Government allocated N333.96 billion for principal repayments on promissory notes from January to June. The breakdown of expenditures included N92.29 billion on FGN Sukuk rentals, N8.90 billion on FGN Savings Bonds, and N5.56 billion on green bond interest payments.

The majority of the domestic interest burden stemmed from conventional Federal Government bonds and Treasury Bills. The figures underscore the increasing financial strain of servicing Nigeria's domestic debt, which has been exacerbated by rising debt obligations.

Previous reports indicated that between June 2023 and December 2025, Nigeria faced N10.61 trillion in additional debt-service costs, significantly outpacing the N6.47 trillion spent on strategic infrastructure development during the same timeframe.