Nigeria’s domestic debt service bill surged by 164 percent year-on-year in the first quarter of 2025, driven by sharp increases in interest payments on Treasury Bills and Federal Government bonds, according to data sourced from the Debt Management Office (DMO).
The DMO data revealed that the federal government spent N2.6 trillion on domestic debt service between January and March, marking a 65 percent increase from the previous quarter.
The rise, according to FBNQuest Merchant Bank, “reflects a recurring seasonal pattern, where debt obligations typically peak in the first quarter of the year due to a higher volume of debt issuances during this period, resulting in a front-loaded debt service profile.”