Nigeria paid N140.29bn in interest on its domestic US dollar bond between January and September 2025, according to figures obtained from the Debt Management Office.
Data from the DMO’s Actual Domestic Debt Service report showed that the Federal Government made two coupon payments on the FGN US Dollar Bond during the nine-month period — N67.99bn in March and N72.31bn in September.
The payments formed part of the N6.06tn total interest incurred on domestic debt instruments within the period. Overall domestic debt service, including interest and principal repayments, stood at N6.32tn.
A breakdown of the interest payments indicated that FGN Bonds accounted for N4.17tn, while Nigerian Treasury Bills cost N1.81tn. FGN Sukuk attracted N70.72bn, FGN Savings Bonds recorded N9.60bn, and the Green Bond accounted for N1.08bn.
Although N140.29bn was paid in interest on the domestic dollar bond, its outstanding principal declined in naira terms over the review period. The DMO reported that Domestic FGN US Dollar Bonds stood at N1.41tn as of December 31, 2024, but fell to N1.35tn by September 30, 2025 — a drop of about N55.48bn.
The reduction, however, was attributed to exchange rate movements rather than repayment of the dollar principal. The $917.41m bond issued in September 2024 was converted at the Central Bank of Nigeria’s official rate of N1,535.32/$1 as of December 2024, compared to N1,474.84/$1 by September 2025. The appreciation of the naira lowered the reported naira value of the same dollar-denominated obligation.
Meanwhile, total domestic debt rose from N70.41tn at the end of 2024 to N77.81tn by September 2025, representing an increase of N7.40tn. FGN Bonds accounted for N61.99tn of the domestic debt stock as of September 2025, up from N55.44tn in December 2024. Treasury Bills also climbed from N12.35tn to N12.68tn within the same period.
The domestic dollar bond, introduced in August 2024 under a $2bn programme, raised over $900m from local investors. The debut issuance, which was 180 per cent oversubscribed, was later listed on the Nigerian Exchange and FMDQ Exchange and recognised as the “West Africa Deal of the Year.”
Though the instrument represents a relatively small portion of total debt — about 2.31 per cent of the N6.06tn interest paid in the period — analysts note that foreign-currency borrowing carries exchange rate risks. A weaker naira increases repayment costs in local currency terms.
Commenting on the bond’s launch, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said, “The issuance of this inaugural domestic FGN US Dollar Bond highlights the continued faith investors have in Nigeria’s economy.”
The $500m five-year bond, carrying a 9.75 per cent coupon, represents the first tranche of the $2bn programme registered with the Securities and Exchange Commission.
