N166.79tn Debt Stock Rises As Q2 Domestic Debt Service Falls

By  Johnson Emmanuel

Nigeria’s total public debt climbed to N166.79 trillion as of 30 June 2026, according to the latest public debt portfolio report released by the Debt Management Office (DMO) on Friday. The increase came alongside a sharp decline in domestic debt-service payments during the second quarter.

DEVELOPMENT

The debt stock increased by N7.44 trillion, or 4.7 percent, from N159.35 trillion at the end of the first quarter of 2026. Year-on-year, it rose by N14.39 trillion, or 9.4 percent, from N152.4 trillion in June 2025.

Domestic debt stood at N91.59 trillion, representing 54.91 percent of total debt, while external debt was N75.2 trillion, or 45.09 percent.

Federal government debt accounted for N152.77 trillion, comprising N86.99 trillion domestic and N65.77 trillion external debt. States and the Federal Capital Territory accounted for N14.01 trillion.

DATA

Domestic debt increased by N11.04 trillion, or 13.7 percent, from June 2025, while external debt rose by N3.35 trillion, or 4.7 percent.

In dollar terms, total public debt stood at $120.93 billion, compared with $99.66 billion a year earlier. The DMO used the Central Bank of Nigeria (CBN) official exchange rate of N1,379 to the dollar at 30 June 2026 to convert external debt into naira.

Meanwhile, domestic debt-service payments fell 31.8 percent in Q2 to N2.14 trillion from N3.14 trillion in Q1.

Interest and rental payments accounted for N1.98 trillion, while principal repayments were N164.28 billion. FGN bond interest was the largest component at N1.39 trillion, followed by N488.80 billion in Nigerian Treasury Bills interest.

SIGNIFICANCE

The figures present two different movements in Nigeria’s debt position. The overall stock increased substantially during the quarter, while the immediate domestic debt-service burden declined.

The Q2 debt-service figure also reverses the Q1 increase, when domestic debt service rose 37.5 percent to N3.14 trillion from N2.28 trillion in Q4 2025.

The composition of debt remains significant, with domestic obligations accounting for more than half of the total stock and the federal government responsible for the overwhelming majority of the debt.

NEXT MOVE

The principal repayment bill was N164.28 billion in Q2, with N136.96 billion settled in June. This included N66.27 billion in naira-denominated promissory notes and N70.69 billion in foreign-currency-denominated notes.

The next data releases will be important for determining whether the Q2 reduction in domestic debt service represents a sustained moderation or mainly reflects the timing of repayments.

OUR LENS

The immediate view is not simply that Nigeria borrowed more or paid less. It is that debt accumulation and debt servicing moved in different directions during Q2. The N166.79 trillion stock establishes the scale of outstanding obligations, while the N2.14 trillion quarterly domestic service bill shows the near-term cash burden. The policy question therefore shifts towards how borrowing, refinancing, interest costs and economic growth interact as the debt stock continues to rise.

Johnson Emmanuel is a journalist, covering business, investment, monetary & fiscal policies, CBN, economic affairs and issues of significance to Nigeria’s corporate and public sectors.