DOMESTIC DEBT SERVICING GULPS ₦5.28 TRILLION IN FIRST HALF OF 2026, DEBT MANAGEMENT OFFICE DATA REVEALS

Federal Government expenditures highlight mounting fiscal pressure as interest and rental obligations swallow ₦4.95 trillion of total domestic debt commitments between January and June

The Federal Government of Nigeria spent ₦5.28 trillion on domestic debt servicing obligations during the first six months of 2026, according to recent figures published by the Debt Management Office (DMO).

A breakdown of the debt metrics shows that interest and rental payments accounted for the vast majority of the expenditure, swallowing ₦4.95 trillion, or nearly 94 percent, of the total domestic debt servicing tally.

The remaining ₦333.96 billion was allocated toward principal repayments on outstanding promissory notes issued by the Federal Government to meet contractual and statutory liabilities.

Federal Government bonds represented the largest single component of the domestic debt interest bill, requiring ₦3.35 trillion in payments, followed by Nigerian Treasury Bills, which absorbed approximately ₦1.49 trillion over the six months.

Additional interest payments included ₦92.29 billion for FGN Sukuk rentals, ₦8.90 billion in FGN Savings Bond interest, and ₦5.56 billion for green bond obligations, reflecting high yields on government fixed-income instruments.

Economic analysts noted that while debt servicing expenditure dipped by 31.8 percent from ₦3.14 trillion in the first quarter to ₦2.14 trillion in the second quarter, high interest rate environments continue to place immense strain on available revenues, limiting fiscal space for infrastructure development and critical social programs.