Nigeria’s domestic debt servicing climbed to N1.71 trillion in the second quarter of 2025, covering the period from April to June

This was revealed in the latest data published by the Debt Management Office on its official website.

The DMO report revealed that interest payments across multiple debt instruments accounted for the bulk of the spending, totaling N1.69 trillion.

In addition to interest payments, the federal government spent N20.14 billion on principal repayments during the three-month period. Combined, these brought Nigeria’s total domestic debt service to N1,707,087,151,475.90 for the second quarter of 2025.

A breakdown of the data reveals that Federal Government Bonds and Nigerian Treasury Bills made up the largest share of domestic debt service payments, highlighting the government’s continued dependence on local borrowing to bridge fiscal gaps.

For Nigerian Treasury Bills, the government spent a total of N537.9 billion during the quarter — comprising N254.12 billion in April, N169.39 billion in May, and N114.39 billion in June.

FGN Bonds represented the largest portion of the debt servicing costs, amounting to N1.074 trillion in total. Payments stood at N502.66 billion in April, N252.54 billion in May, and N318.84 billion in June.

The report also detailed payments across other domestic debt instruments during the quarter.

FGN Savings Bonds: Servicing of the retail-focused savings bonds totaled N3.19 billion, with steady monthly payments ranging from N930 million to N1.17 billion.

FGN Sukuk: Payments on the Sharia-compliant Sukuk bonds amounted to N70.72 billion, largely driven by a significant N43.26 billion disbursement in June and N27.45 billion in April.

Green Bonds: The federal government made a N1.08 billion payment in June for its environmentally linked Green Bonds.

Promissory Notes: According to the DMO, N20.14 billion was spent on principal repayments for Naira-denominated Promissory Notes, while no payments were made on foreign currency promissory notes during the period.

Nigeria’s domestic debt servicing reached its highest level in April 2025 at N805.31 billion, before declining to N423.10 billion in May and edging up slightly to N478.67 billion in June.

According to the DMO, Nigeria’s total domestic debt stock climbed to N76.59 trillion as of mid-2025.