Nigeria’s promissory notes plummeted by 15.6% quarter-on-quarter, declining from N1.542 trillion in December 2024 to N1.301 trillion in March 2025, according to the Debt Management Office.

The decrease, which also reflects a 17.1% year-on-year drop from March 2024, underscores the federal government’s intensified efforts to settle verified obligations and bolster economic confidence.

Promissory notes, legally binding instruments committing one party to pay a specified sum to another under agreed terms, have been a focal point of Nigeria’s fiscal strategy.

The reduction aligns with the government’s recent push to clear outstanding contractor payments for verified projects across Ministries, Departments, and Agencies.

Last week, the Office of the Accountant General of the Federation reaffirmed the government’s commitment to meticulous payment processes, emphasizing value for money in contract settlements.

“Efforts are underway to pay for contracts duly awarded and completed according to specifications”, the OAGF said.

In April, the Director-General of the Debt Management Office, Patience Oniha, attributed Nigeria’s rising debt burden to a mix of fresh borrowings and the continued issuance of promissory notes to settle outstanding obligations without adequate revenue support.

Oniha emphasized that although borrowing is a legitimate tool for financing government activities, it must be backed by sufficient revenue to remain sustainable.

“There are new borrowings for the budget, states, and federal government will borrow, ways and means will be approved, and all.

“What triggers debts and why the debt stock keeps growing is because when the debt stock is growing, debt service also grows.

“The government has been issuing promissory notes to settle obligations for which it doesn’t really have the revenue. So, that is why the debt stock has been growing,” she noted.