Nigeria spent $954.06 million servicing its external debt obligations in the first quarter of 2026, representing a 31.5% decline from the $1.39 billion recorded in the corresponding period of 2025.

This is according to the latest data from the Debt Management Office (DMO).

The Q1 2026 payment comprised $308.33 million in principal repayments, $623.22 million in interest payments and $22.50 million in other charges.

The decline followed a significantly higher principal repayment burden in Q1 2025, when Nigeria paid $759.58 million in principal, compared with $308.33 million in the first quarter of 2026.

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What the data is saying

The DMO’s figures show that external debt-service payments fell substantially year-on-year, although interest remained the largest component of the government’s obligations in Q1 2026.

According to the agency, other charges – aside interest- increased from $3.18 million in Q1 2025 to $22.50 million in Q1 2026.

  • Commercial creditors accounted for the largest share of Q1 2026 external debt service at $501.84 million, followed by multilateral creditors at $271.90 million and bilateral creditors at $180.32 million.
  • Commercial debt-service payments in Q1 2026 were dominated by interest obligations, which stood at $476.86 million. The Eurobond alone accounted for $427.72 million of the interest payment.
  • First Abu Dhabi Bank also received $47.72 million in interest, alongside $20.56 million in other charges, bringing payments to the bank to $68.28 million during the quarter.
  • Multilateral creditors received $271.90 million in Q1 2026, comprising $176.34 million in principal, $95.53 million in interest and $30,107.78 in other charges.
  • The International Development Association accounted for $243.42 million of multilateral payments, including $156.94 million in principal and $86.47 million in interest.
  • Bilateral creditors received $180.32 million, with the Export-Import Bank of China accounting for $174.84 million of the total.

The Q1 2026 figures also compare favourably with the fourth quarter of 2025, when Nigeria spent $1.80 billion servicing external debt. The Q1 2026 figure therefore represented a 47.0% decline from the preceding quarter, largely reflecting the absence of the $1.12 billion Eurobond principal repayment recorded in Q4 2025.

More Insights

Nigeria’s total debt service has risen sharply in recent years, with a significant portion of the increase occurring under the administration of President Bola Ahmed Tinubu, as debt obligations surged to N16.26 trillion in 2025 from N7.79 trillion in 2023.

  • Since Q3 2023, when the current administration took office, quarterly debt service has remained elevated, peaking at a record N4.86 trillion in Q4 2025.
  • On a quarterly basis, the upward trend peaked in Q4 2025, with debt service hitting a record N4.86 trillion. This was 37.86% higher than N3.52 trillion in Q3 2025 and 49.93% above N3.24 trillion in Q4 2024, showing a steady rise in debt payments.

Nigeria’s total public debt stood at N159.35 trillion as of March 31, 2026, up marginally from N159.28 trillion at the end of December 2025.

What you should know

The Nigerian Economic Summit Group had warned that despite improving fiscal indicators, Nigeria remains exposed to significant debt risks, citing weak revenue generation, persistent structural imbalances, and continued dependence on borrowing to finance budget deficits and sustain public spending.

Despite the increase in overall debt, the structure of Nigeria’s debt portfolio remained broadly stable, with a slight tilt toward domestic borrowing over the one-year period.

DMO also noted Nigeria’s total debt service rose to about N16 trillion in 2025, driven by higher domestic interest payments and sustained external obligations.