Nigeria’s domestic debt service falls N1 trillion to N2.14 trillion in Q2 2026

In the second quarter of 2026, Nigeria's domestic debt-service payments decreased to N2.14 trillion from N3.14 trillion in the previous quarter, marking a 31.8% reduction. The Debt Management Office (DMO) revealed that this decline was primarily driven by a decrease in interest and rental payments, which comprised N1.98 trillion of the total Q2 debt-service bill.

Principal repayments, on the other hand, amounted to N164.28 billion, a significantly smaller portion of the overall domestic debt-service bill. The largest share of the domestic debt-service bill was attributed to interest payments on Federal Government bonds, which reached N1.39 trillion. Other quarters saw similar declines in domestic debt-service costs, despite an increase in Nigeria's public debt stock, as the fixed-income market offered attractive sovereign yields.