Nigeria spends N3.14 trillion servicing domestic debt in Q1 2026, up 20.3% year-on-year

In the first quarter of 2026, Nigeria spent a staggering N3.14 trillion on servicing its domestic debt, marking a significant 20.3% increase compared to Q1 2025's total of N2.61 trillion. According to the Debt Management Office (DMO), this figure surged by 37.5% from the previous quarter's Q4 2025 total of N2.28 trillion, underscoring the escalating debt-service burden at the beginning of 2026.

Interest payments comprised N2.97 trillion of the Q1 2026 expenditure, while principal repayments accounted for N169.68 billion. In contrast, Q1 2025 figures revealed interest payments of N2.37 trillion and principal repayments totaling N241.91 billion. The Federal Government's domestic debt service climbed steadily throughout 2026, from N741.82 billion in January to N967.67 billion in February, and peaking at N1.43 trillion in March.

The data illustrates that for every N100 spent servicing domestic debt in Q1 2026, roughly N95 went towards interest payments, with N5 allocated to principal repayments. Notably, the composition of interest payments evolved across the three periods. Interest payments in Q1 2026 escalated from N726.38 billion in January to N967.67 billion in February and N1.28 trillion in March.

As domestic borrowing remains pivotal in funding government spending, the Q1 2026 debt-service figures demonstrate that interest costs persist as the dominant share of the Federal Government's domestic debt-service obligations.