ABUJA — Nigeria spent N5.28 trillion servicing its domestic debt in the first half of 2026, according to figures from the Debt Management Office (DMO), after a bill of N8.61 trillion for the whole of 2025.

Of the 2025 total, N8.24 trillion, about 96 per cent, went on interest, while N370.93 billion was used to repay principal on promissory notes. In the first six months of 2026, interest and rental payments came to N4.95 trillion and principal repayments to N333.96 billion. The half-year figure already equals about 61 per cent of the full 2025 bill.

FGN naira bonds accounted for the largest share of 2025 interest payments at N5.35 trillion, followed by Treasury Bills at N2.55 trillion. Sukuk cost N171.73 billion, FGN dollar bonds N140.29 billion, savings bonds N13.59 billion and green bonds N6.67 billion. Monthly payments ranged from N274.74 billion in January to N1.30 trillion in March.

Economist Dr Marcel Okeke said heavy government borrowing was crowding out private businesses, which face lending rates of 23 per cent or more. He urged the government to diversify the economy and raise revenue by taxing productive activity rather than relying on loans.