Nigeria's Q1 2026 debt service jumps to N3.14tn as interest gulps 95% of payments
Nigeria spent N3.14 trillion servicing domestic debt in Q1 2026, a 20.3% increase from N2.61 trillion in Q1 2025 and 37.5% higher than Q4 2025's N2.28 trillion, per DMO data. Interest payments dominated at N2.97 trillion (94.6% of total), while principal repayments were just N169.68 billion (5.4%). For every N100 spent, N95 covered interest and only N5 reduced the actual debt burden.
FGN bonds drove interest costs at N1.96 trillion, with Nigerian Treasury Bills contributing N1.003 trillion. The monthly trajectory shows accelerating pressure: interest rose from N726.38 billion in January to N967.67 billion in February and N1.28 trillion in March. Meanwhile, Nigeria's total public debt edged up to N159.35 trillion by March 31, 2026, from N159.28 trillion at end-2025.
This means debt servicing is increasingly about paying interest rather than reducing principal—a cycle that compounds future obligations. With interest consuming nearly all debt-service funds, less fiscal space remains for critical investments in infrastructure, education, or healthcare. As debt costs rise, will this force deeper subsidy cuts, higher taxes, or increased borrowing just to stay afloat?