Breakdown of Q1 2026 Debt Payments
Nigeria spent $954.06 million servicing its external debt obligations in the first quarter of 2026. This represents a 31.5% decline from the $1.39 billion recorded in the corresponding period of 2025, 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.
The Q1 2026 figures also compare favorably with the fourth quarter of 2025, when Nigeria spent $1.80 billion servicing external debt. The Q1 2026 figure represents a 47.0% decline from the preceding quarter, largely reflecting the absence of the $1.12 billion Eurobond principal repayment recorded in Q4 2025.
Commercial and Multilateral Creditor Payments
Commercial creditors accounted for the largest share of Q1 2026 external debt service at $501.84 million. Multilateral creditors followed at $271.90 million, while bilateral creditors received $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 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.
Rising Domestic Debt and Fiscal Concerns
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. Debt obligations surged to N16.26 trillion in 2025 from N7.79 trillion in 2023.
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. 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.
The Nigerian Economic Summit Group (NESG) had warned that despite improving fiscal indicators, Nigeria remains exposed to significant debt risks. The group cited weak revenue generation, persistent structural imbalances, and continued dependence on borrowing to finance budget deficits and sustain public spending.
