The Federal Government of Nigeria spent N611.71 billion in March 2025 to service its first-ever domestic US dollar-denominated bond, according to the Debt Management Office (DMO).
This figure accounted for 47.05% of the total N1.3 trillion spent on domestic debt servicing in March and 23.44% of the N2.61 trillion spent in the first quarter of the year.
An interest payment of $44.97 million was due on March 6 and was converted at the official exchange rate of N1,511.80/$, totaling around N67.99 billion.
The DMO’s figures suggest the government also redeemed part of the bond’s principal, with the remaining N543.72 billion likely covering the repayment.
The massive payout underscores the increasing burden of foreign currency-linked debt on Nigeria’s fiscal position, especially as the naira continues to face volatility.
Launched in August 2024 under a $2 billion issuance program, the bond raised over $900 million from domestic investors and was oversubscribed by 180%.
It also received recognition as West Africa Deal of the Year, underscoring its impact on the regional financial market.