Nigeria’s domestic debt service declines to N2.14 trillion in Q2 2026

In the second quarter of 2026, Nigeria's domestic debt-service payments dropped significantly, reaching N2.14 trillion from N3.14 trillion in the previous quarter. According to the Debt Management Office (DMO), this represents a substantial 31.8% reduction. The bulk of the Q2 debt-service bill, N1.98 trillion, was comprised of interest and rental payments, while principal repayments amounted to N164.28 billion.

The majority of these interest payments were tied to Federal Government bonds, totaling N1.39 trillion. Interest and rental payments together made up the largest share of the domestic debt-service bill during the quarter. Principal repayments were significantly lower, at N164.28 billion, compared to the interest and rental payments.

The Q2 decline in debt-service costs follows a steep increase at the start of the year, where the Q1 bill was 37.5% higher than in Q4 2025. Notably, the Q2 figures indicate that the rise in public debt stock did not correspond with a rise in domestic debt-service payments. The Nigerian fixed-income market had offered some of its most appealing sovereign yields recently before a gradual easing cycle started to reduce returns across the curve.