The Federal Government spent N3.14 trillion servicing domestic debt in the first three months of 2026 as rising interest obligations continued to place pressure on public finances.
Debt Management Office figures showed that the amount was 20.3 per cent higher than the N2.61 trillion recorded in the corresponding period of 2025.
Interest payments accounted for N2.97 trillion, representing about 95 per cent of total domestic debt servicing during the quarter.
Only N169.68 billion was used for principal repayments.
The first quarter figure was also significantly higher than the N2.28 trillion recorded in the final quarter of 2025, reflecting a sharp increase in the cost of meeting domestic debt obligations.
Monthly payments rose from N741.82 billion in January to N967.67 billion in February before reaching N1.43 trillion in March.
Interest costs followed the same upward trend, rising from N726.38 billion in January to N967.67 billion in February and N1.28 trillion in March.
Federal Government bonds remained the largest source of interest payments, accounting for about N1.96 trillion.
Conventional Federal Government bonds attracted approximately N1.90 trillion in interest, while the Federal Government United States Dollar Bond accounted for N61.97 billion.
Nigerian Treasury Bills generated another N1.003 trillion in interest obligations during the quarter, while Federal Government Savings Bonds accounted for N4.24 billion.
The figures indicate that approximately N95 out of every N100 spent on domestic debt servicing went into interest, leaving only about N5 for principal repayment.
The burden was heavier than in the first quarter of 2025, when interest payments amounted to N2.37 trillion and principal repayments stood at N241.91 billion.
Nigeria’s total public debt stock stood at N159.35 trillion as of March 31, 2026, compared with N159.28 trillion at the end of December 2025.
The country’s debt stock had stood at N87.38 trillion in June 2023.
The figures have increased attention on the cost of borrowing, particularly as high domestic interest rates continue to increase refinancing obligations.
While domestic servicing costs rose, external debt payments declined.
Nigeria spent $954.06 million servicing external obligations during the first quarter of 2026, representing a 31.5 per cent reduction from the $1.39 billion recorded during the same period in 2025.
The external payment comprised $308.33 million in principal, $623.22 million in interest and $22.50 million in other charges
.The decline was driven largely by lower principal repayment obligations compared with the previous year.
