Nigeria's Domestic Debt Service Drops to N2.14 Trillion

In the second quarter of 2026, Nigeria's domestic debt service payments fell to N2.14 trillion, a decrease of approximately N1 trillion from N3.14 trillion in the first quarter, according to the Debt Management Office (DMO). This decline represents a 31.8% reduction quarter-on-quarter, despite an increase in the country's total public debt, which rose from N159.35 trillion at the end of March to N166.79 trillion by June 30.

Interest and rental payments accounted for N1.98 trillion of the second quarter debt-service bill, while principal repayments were N164.28 billion. The Federal Government of Nigeria (FGN) bonds contributed the largest share of domestic debt-service costs, with interest payments totaling N1.39 trillion.

The government made significant interest payments in April, May, and June, while principal repayments included N136.96 billion in June alone. Economist Segun Ogundipe cautioned that the reduction in quarterly debt service does not indicate a decrease in the underlying debt burden, as various factors can influence payment schedules and refinancing arrangements.