…: Debt Stock Climbs To N77.8tn As Borrowing Surges
…Interest Payments Rise Despite Naira Appreciation
Daud Olatunji
Nigeria paid N140.29 billion in interest on its domestic US dollar bond between January and September 2025, the Debt Management Office (DMO) has revealed, underscoring the rising cost of foreign-currency borrowing amid ongoing exchange rate pressures.
The DMO’s Actual Domestic Debt Service report showed that the Federal Government made two interest payments on the FGN US Dollar Bond within the period—N67.99 billion in March and N72.31 billion in September—bringing the nine-month total to N140.29 billion.
This figure formed part of the N6.06 trillion total interest paid on domestic debt instruments over the same period. Overall domestic debt service, including principal repayments, stood at N6.32 trillion between January and September 2025.
A breakdown of the interest payments revealed that Federal Government Bonds accounted for N4.17 trillion, Nigerian Treasury Bills N1.81 trillion, FGN Sukuk N70.72 billion, FGN Savings Bonds N9.60 billion, and the Green Bond N1.08 billion.
Despite the substantial interest outlay, the principal of the domestic dollar bond fell slightly from N1.41 trillion at the end of 2024 to N1.35 trillion by September 2025, reflecting exchange rate gains rather than repayments.
The DMO noted that the $917.41 million FGN US Dollar Bond issued in September 2024 was converted at N1,535.32/$1 as of December 2024, and at a stronger N1,474.84/$1 by September 2025, reducing the naira value of the obligation by about N55.48 billion.
Meanwhile, total domestic debt stock surged by N7.40 trillion, from N70.41 trillion in December 2024 to N77.81 trillion by September 2025. FGN Bonds remained the largest component, increasing from N55.44 trillion to N61.99 trillion, while Treasury Bills edged up from N12.35 trillion to N12.68 trillion.
The domestic dollar bond, introduced in August 2024 as part of a $2 billion programme, raised over $900 million from local investors and was the first of its kind issued domestically in foreign currency.
Its debut was 180 percent oversubscribed and later listed on the Nigerian Exchange and FMDQ Exchange, earning recognition as “West Africa Deal of the Year.”
While praised for deepening capital markets and providing a domestic alternative to Eurobond issuance, the instrument exposes the government to exchange rate risk, with interest payments remaining tied to the US dollar.
Finance Minister and Coordinating Minister of the Economy, Wale Edun, said the oversubscription reflects investor confidence in Nigeria’s economy and highlights efforts to diversify funding sources.
“The issuance of this inaugural domestic FGN US Dollar Bond demonstrates continued faith in Nigeria’s economic growth and financial inclusion,” Edun said.
'
'Do you want to share a story with us? Do you want to advertise with us? Do you need publicity for a product, service, or event? Contact us on WhatsApp +2348183319097 Email: platformtimes@gmail.com
We are committed to impactful investigative journalism for human interest and social justice. Your donation will help us tell more stories. Kindly donate any amount HERE
