Nigeria’s domestic debt service reached ₦1.707 trillion in the second quarter of 2025, according to the Debt Management Office (DMO). Between April and June, the country spent ₦1.686 trillion on interest payments and ₦20.14 billion on principal repayments. Debt service peaked in April at ₦805.31 billion, fell to ₦423.10 billion in May, and rose slightly to ₦478.67 billion in June.
The bulk of these payments came from Federal Government of Nigeria (FGN) Bonds and Nigerian Treasury Bills (NTBs), underscoring the government’s continued reliance on domestic borrowing to finance budgetary deficits. Interest on FGN Bonds accounted for ₦1.074 trillion, while interest on NTBs totaled ₦537.9 billion during the quarter. Additional components of the domestic debt service included payments on FGN Savings Bonds (₦3.19 billion), FGN Sukuk (₦70.72 billion), Green Bonds (₦1.08 billion), and principal repayment on Naira‑denominated Promissory Notes (₦20.14 billion).
The DMO reported that Nigeria’s total domestic debt stock rose to ₦76.59 trillion as of mid‑2025, a growth largely driven by the government’s dependence on domestic borrowing. This significant increase in debt service highlights the need for the Nigerian government to explore alternative financing options and implement strategies to reduce reliance on domestic borrowing. As the debt stock continues to climb, prioritising effective debt management is essential to ensure borrowing remains sustainable and aligned with the country’s economic development goals. The latest DMO figures serve as a reminder of the importance of sound debt management in maintaining economic stability and promoting sustainable growth.
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