Nigeria's Domestic Debt Servicing Hits N8.61 Trillion

In 2025, Nigeria spent N8.61 trillion on domestic debt servicing, with the Federal Government incurring an additional N5.28 trillion in the first six months of 2026. This expenditure represents 61.4 percent of the total spent in 2025.

The Debt Management Office reported that the 2025 domestic debt-service expenditure included N8.24 trillion in interest payments and N370.93 billion in principal repayments, with interest payments making up approximately 95.7 percent of the total. In the first half of 2026, the government allocated N4.95 trillion for interest and rental payments and N333.96 billion for principal repayments.

The majority of interest payments in 2025 were attributed to Nigerian Treasury Bills and Federal Government bonds, with N5.35 trillion and N2.55 trillion respectively. The data indicates a significant reliance on conventional government securities for servicing domestic debt, with fluctuations in monthly expenditure throughout 2025 reflecting the timing of obligations.