FG Spends N3.14trn Servicing Domestic Debt in Q1 2026

By Adedapo Adesanya

The federal government spent N3.14 trillion on servicing its domestic debt in the first quarter (Q1) of 2026, according to the Debt Management Office (DMO).

The figure, contained in the DMO’s latest domestic debt service report for Q1 2026, comprised N2.97 trillion in interest payments and N169.68 billion in principal repayments.

According to the report, the government spent N741.82 billion on domestic debt service in January before the figure rose to N967.67 billion in February.

Debt service increased further to N1.43 trillion in March, bringing total spending for the quarter to N3.14 trillion.

The March figure represented a 47.7 per cent increase from the N967.67 billion recorded in February and was 92.7 per cent higher than the N741.82 billion spent in January.

The debt office said interest payments accounted for approximately 94.6 per cent of the total domestic debt service during the quarter.

Treasury bills accounted for the largest share of interest payments at N1 trillion, while interest payments on Federal Government bonds stood at N1.96 trillion.

The government also paid N4.24 billion in interest on FGN savings bonds during the period.

The debt management body said the principal component of the debt service comprised N169.68 billion in repayments on local-denominated promissory notes.

Overall, domestic debt service rose significantly throughout the quarter, with March alone accounting for nearly half of the N3.14 trillion spent between January and March.