Domestic debt service hits N3.14tn in first quarter

Etim Ekpimah

The Federal Government’s domestic debt service bill climbed to N3.14tn in the first quarter of 2026, with interest payments accounting for the overwhelming majority of the expenditure.

Data released by the Debt Management Office showed that N2.97tn, representing 94.6 per cent of the total, was spent on interest payments, while N169.68bn went towards principal repayments.

The government’s debt-service outlay increased progressively during the three months under review.

It spent N741.82bn in January, while February recorded N967.67bn. The figure rose sharply to N1.43tn in March.

The March expenditure represented a 47.7 per cent increase from the February figure and was 92.7 per cent higher than the amount recorded in January.

According to the DMO’s domestic debt service report for the first quarter, interest on Federal Government bonds accounted for N1.96tn of the interest bill, while treasury bills attracted N1tn.

Interest payments on FGN savings bonds amounted to N4.24bn during the period.

The DMO said the principal repayment component comprised N169.68bn paid towards local-currency-denominated promissory notes.

The sharp rise in March meant that almost half of the government’s domestic debt-service expenditure for the quarter was incurred in the final month.

Meanwhile, Nigeria’s total public debt increased marginally to N159.35tn in the first quarter, representing a 0.01 per cent rise.

The latest domestic debt-service figures come amid the Federal Government’s broader efforts to manage its debt obligations. President Bola Tinubu had earlier projected that Nigeria would spend $11.6bn servicing its debt in 2026.