DMO: Nigeria spends N5.28 trillion on domestic debt service in H1 2026

In the first half of 2026, Nigeria spent a staggering N5.28 trillion on servicing its domestic debt, with the majority of this cost coming from interest and rental payments totaling N4.95 trillion. According to the Debt Management Office (DMO), the government also paid N333.96 billion in principal repayments on promissory notes during the same period.

This data reveals the significant financial burden of domestic borrowing as Nigeria grapples with escalating debt obligations while attempting to meet spending needs for infrastructure and other government priorities. The DMO's figures indicate that interest and rental payments accounted for the bulk of the N5.28 trillion spent on domestic debt service, with N92.29 billion allocated to FGN Sukuk rentals, N8.90 billion to FGN Savings Bonds, and N5.56 billion to green bond interest payments.

Conventional Federal Government bonds and Treasury Bills constituted the majority of the government's domestic interest burden throughout the first half of the year. The principal repayments for promissory notes, which amounted to N333.96 billion, varied based on the timing and size of interest payments and principal repayments across the government's domestic debt instruments.

These recent figures further underscore the challenges Nigeria faces in managing its debt obligations, adding to concerns about the resources required to meet these financial commitments.