Nigeria's N140bn Interest Payment on Dollar Bonds Revealed

From January to September 2025, Nigeria made interest payments totaling N140.29 billion on its domestic US dollar bonds, as reported by the Debt Management Office (DMO). The payments included N67.99 billion in March and N72.31 billion in September, contributing to a cumulative interest of N6.06 trillion for domestic debt instruments.

The overall domestic debt service, which includes both interest and principal repayments, amounted to N6.32 trillion during this period. The breakdown of interest payments showed that federal government bonds accounted for N4.17 trillion, Nigerian Treasury bills for N1.81 trillion, and FGN Sukuk for N70.72 billion.

Despite the N140.29 billion interest outlay, the outstanding principal on domestic US dollar bonds declined from N1.41 trillion at the end of December 2024 to N1.35 trillion by September 30, 2025, primarily due to exchange rate fluctuations. The total domestic debt stock rose from N70.41 trillion to N77.81 trillion in the same period, indicating a significant increase in debt levels.