Nigeria’s total domestic debt service reached ₦1.707 trillion in the second quarter of 2025 (April–June), according to recent data from the Debt Management Office (DMO).
The government spent ₦1.686 trillion on interest payments across various domestic debt instruments and ₦20.14 billion on principal repayments during the period, bringing total domestic debt servicing to ₦1,707,087,151,475.90.
Debt servicing peaked in April with ₦805.31 billion, before falling to ₦423.10 billion in May and rising slightly to ₦478.67 billion in June.
The bulk of payments were directed toward Federal Government Bonds (FGN Bonds) and Nigerian Treasury Bills (NTBs), highlighting Nigeria’s ongoing reliance on domestic borrowing to cover budget deficits.
As of mid-2025, Nigeria’s total domestic debt stock had climbed to ₦76.59 trillion, underscoring the growing costs of managing public debt.
Breaking down the servicing costs:
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Nigerian Treasury Bills accounted for ₦537.9 billion, with monthly payments of ₦254.12 billion in April, ₦169.39 billion in May, and ₦114.39 billion in June.
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FGN Bonds were the largest component at ₦1.074 trillion, split into ₦502.66 billion in April, ₦252.54 billion in May, and ₦318.84 billion in June.
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The FGN Savings Bond (FGNSB), aimed at retail investors, required ₦3.19 billion in servicing, with monthly payments between ₦930 million and ₦1.17 billion.
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FGN Sukuk bonds, compliant with Islamic finance principles, accounted for ₦70.72 billion, mainly driven by ₦43.26 billion in June and ₦27.45 billion in April.
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Nigeria also paid ₦1.08 billion in June toward servicing its Green Bonds, which fund environmental sustainability projects.
Additionally, ₦20.14 billion was disbursed as principal repayment on Naira-denominated Promissory Notes, while no repayments were made on foreign currency promissory notes during the quarter.
