Nigeria spends N5.28trn n domestic debt service in H1 2026, says DMO

Debt Management Office (DMO) on Thursday revealed that Nigeria spent N5.28 trillion servicing domestic debt in the first half of 2026, with interest and rental payments accounting for N4.95 trillion of the total.

The DMO’s actual domestic debt service figures show that the Federal Government also paid N333.96 billion in principal repayments on promissory notes between January and June.

The figures highlight the cost of servicing domestic borrowing as Nigeria continues to manage rising debt obligations alongside spending needs for infrastructure and other government priorities.

Interest and rental payments on domestic debt instruments totalled N4.95 trillion in the six months, accounting for the bulk of the N5.28 trillion spent on domestic debt service.

Federal Government bonds were the largest contributor, attracting N3.35 trillion in interest payments and accounting for a substantial share of the total. Nigerian Treasury Bills (NTBs) followed with N1.49 trillion.

Interest payments on Federal Government bonds stood at N462.44 billion in January, rose to N707.25 billion in February and reached N792.34 billion in March.

Payments on the bonds declined to N530.84 billion in April and N332.49 billion in May before rising to N525.05 billion in June.

Treasury bill interest payments totalled N1.49 trillion, with March accounting for approximately N481.47 billion, the highest monthly amount for the instrument during the period.

The government also spent N92.29 billion on FGN Sukuk rentals and N8.90 billion on FGN Savings Bonds, while green bond interest payments amounted to N5.56 billion.

The figures show that conventional Federal Government bonds and Treasury Bills made up most of the government’s domestic interest burden during the first half of the year.