By Abiodun Abdullai
Nigeria's Debt Management Office (DMO) has reported that the country spent ₦1.707 trillion on servicing domestic debt in the second quarter of 2025, covering April to June.
The latest figures, published on the DMO's official website, show that ₦1.686 trillion went into interest payments and ₦20.14 billion into principal repayments.
A breakdown of the data reveals that Federal Government Bonds (FGN Bonds) and Nigerian Treasury Bills (NTBs) accounted for most of the debt service, underscoring the government's continued reliance on domestic borrowing to finance its budget deficit.
Nigeria's domestic debt service peaked in April 2025 at ₦805.31 billion, dropped to ₦423.10 billion in May, and slightly increased to ₦478.67 billion in June.
According to the DMO, the country's total domestic debt stock has now reached ₦76.59 trillion as of mid-2025.
Economists warn that rising debt servicing costs may continue to strain fiscal resources, potentially limiting capital expenditure and slowing access to finance for small and medium enterprises (SMEs) — a key engine of Nigeria's economic growth.
Read also
The report further indicates the following breakdown for the quarter:
NTBs: ₦537.9 billion
FGN Bonds: ₦1.074 trillion
FGN Savings Bonds: ₦3.19 billion
FGN Sukuk: ₦70.72 billion
Green Bonds: ₦1.08 billion
Promissory Notes: ₦20.14 billion
Analysts suggest that while domestic borrowing provides short-term liquidity, the growing debt profile reinforces the need for sustainable fiscal strategies, improved revenue generation, and investment-friendly policies to support Nigeria's business sector.
No comments:
Post a Comment