Nigeria domestic debt service hits ₦1.7 trn in Q2 2025
According to the Debt Management Office (DMO), the federal government spent ₦1,707,087,151,475.90 on domestic debt service during April to June 2025. This total includes ₦1,686 billion in interest payments and ₦20.14 billion in principal repayments.
The breakdown shows that FGN Bonds and Nigerian Treasury Bills (NTBs) comprised the bulk of the payments. Over the quarter, ₦1.074 trillion went toward servicing FGN Bonds, while ₦537.9 billion was spent on NTBs. Other financial instruments like Sukuk, Green Bonds, and Savings Bonds also attracted smaller payments in the period.
In terms of timing, the debt service peaked in April 2025 at ₦805.31 billion, dipped in May to ₦423.10 billion, and then rose again to ₦478.67 billion in June. At the same time, the total domestic debt stock was reported at ₦76.59 trillion by mid-2025.
This surge in domestic debt servicing underscores Nigeria’s heavy reliance on internal borrowing to fund fiscal deficits. The high interest burden raises concerns about fiscal sustainability, especially as it potentially squeezes funds that could be allocated to development and public services.
