Nigeria's domestic debt-service obligations eased by about N1 trillion in the second quarter of 2026, falling to N2.14 trillion from N3.14 trillion in the first quarter. Figures from the Debt Management Office (DMO) put the decline at 31.8% on a quarter-on-quarter basis.
Interest and rental payments dominated the bill at N1.98 trillion, while principal repayments accounted for N164.28 billion.
Interest on Federal Government bonds was the largest single component at N1.39 trillion. Monthly FGN bond interest payments were as follows:
- N530.84 billion in April - N332.49 billion in May - N525.05 billion in June
Nigerian Treasury Bills interest reached N488.80 billion, comprising N180.64 billion in April, N201 billion in May and N107.16 billion in June. FGN Sukuk rental payments totalled N92.29 billion, with N27.49 billion in April, N29.38 billion in May and N35.42 billion in June. Interest on FGN Savings Bonds came to N4.66 billion, while FGN Green Bond interest stood at N5.56 billion.
Principal repayments remained far below interest obligations. June carried the heaviest load at N136.96 billion, made up of N66.27 billion in local-currency-denominated promissory notes and N70.69 billion in foreign-currency-denominated promissory notes. Local-currency promissory note repayments also reached N24.68 billion in April and N2.64 billion in May. There were no foreign-currency promissory note principal repayments in April or May.
The second-quarter decline followed a sharp rise in costs at the start of the year, when the N3.14 trillion first-quarter bill came in 37.5% higher than the N2.28 trillion recorded in the fourth quarter of 2025. First-quarter interest payments were N2.97 trillion, with principal repayments of N169.68 billion.
The lower quarterly debt-service figure coincided with a larger overall public debt stock. The DMO reported total public debt of N166.79 trillion as of June 30, 2026, up from N159.35 trillion at the end of March. Domestic debt stood at N91.59 trillion, or 54.91% of the total portfolio, while external debt amounted to N75.20 trillion.
