Nigeria’s total domestic debt servicing rose to ₦1.707 trillion in the second quarter of 2025 (April–June), according to the latest data released by the Debt Management Office (DMO).
The official figures, published on the DMO’s website, reveal that the Federal Government spent ₦1.686 trillion on interest payments across several debt instruments and ₦20.14 billion on principal repayments, bringing the total domestic debt service to ₦1,707,087,151,475.90 for the three-month period.
A closer look at the breakdown shows that the Federal Government of Nigeria (FGN) Bonds and Nigerian Treasury Bills (NTBs) accounted for the largest share of the debt servicing costs. This underscores the government’s heavy dependence on domestic borrowing to bridge budget deficits amid fiscal pressures and declining oil revenues.
The DMO report highlights that the steady rise in domestic debt servicing reflects both higher interest rate environments and the government’s increased issuance of bonds and treasury instruments to fund public expenditure and infrastructure projects.
Economists note that the ₦1.7 trillion figure represents a significant fiscal burden, consuming a large share of federal revenue and limiting fiscal flexibility for developmental spending.
Nigeria’s total public debt, which includes both domestic and external obligations, has continued to expand as the government seeks to balance short-term financing needs with long-term fiscal sustainability. The DMO has consistently maintained that while borrowing remains necessary, it must be matched with robust revenue generation and prudent expenditure management to ensure debt sustainability.
The Q2 2025 figures come at a time when the Nigerian government is exploring tax reforms, subsidy rationalization, and public-private partnerships (PPPs) to diversify its income base and reduce its reliance on debt.
As of June 2025, Nigeria’s total public debt stock — comprising federal and subnational borrowings — is expected to rise further when external debt data for the same period are released.
