The Nigerian Federal Government (FG) spent a total of N609 billion to service its domestic debt obligations in the first quarter (Q1) of 2020, a 139 percent surge from the fourth quarter (Q4) of 2019, latest data from the National Bureau of Statistics (NBS) show.
Obligations to FGN Bond holders were the largest source of interest payments valued at N488.9 billion.
This was followed by interest payments to Treasury Bill holders of N111.6 billion.
Nigeria’s domestic debt service obligations have risen as borrowings increased over the past 5 years.
While yields on FGN bonds are down from recent highs, the increase in total overall debt means the interest burden will continue to balloon.