Nigeria spent $954.06 million servicing its external debt in the first quarter of 2026, representing a 31.5 per cent decline from the $1.39 billion recorded in the same period of 2025.

The latest figures released by the Debt Management Office (DMO) showed that the amount comprised $308.33 million in principal repayments, $623.22 million in interest payments and $22.50 million in other charges.

The year-on-year decline was largely driven by a sharp reduction in principal repayments, which fell from $759.58 million in the first quarter of 2025 to $308.33 million during the period under review.

Despite the overall reduction, interest payments remained the largest component of Nigeria’s external debt obligations in the first quarter.

The DMO data also showed that other charges, excluding interest payments, increased significantly from $3.18 million in Q1 2025 to $22.50 million in Q1 2026.

Commercial creditors received the largest portion of Nigeria’s external debt-service payments during the quarter, accounting for $501.84 million.

Multilateral creditors followed with $271.90 million, while bilateral creditors received $180.32 million.

Of the payments to commercial creditors, interest accounted for $476.86 million, with the Eurobond alone receiving $427.72 million in interest payments.

First Abu Dhabi Bank received $47.72 million in interest and $20.56 million in other charges, bringing its total payment for the quarter to $68.28 million.

Payments to multilateral creditors comprised $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 the multilateral payments, including $156.94 million in principal and $86.47 million in interest.

Meanwhile, bilateral creditors received $180.32 million, with the Export-Import Bank of China accounting for $174.84 million.

Nigeria’s external debt-service obligation also fell significantly compared with the preceding quarter. The $954.06 million recorded in Q1 2026 was 47 per cent lower than the $1.80 billion paid in Q4 2025.

The decline was largely attributed to the absence of a $1.12 billion Eurobond principal repayment made in the final quarter of 2025.

Despite the reduction in external debt service during the quarter, Nigeria’s broader debt-service burden has increased substantially in recent years.

Total debt service rose to N16.26 trillion in 2025 from N7.79 trillion in 2023, with quarterly payments reaching a record N4.86 trillion in Q4 2025.

The Q4 2025 figure represented a 37.86 per cent increase from the N3.52 trillion recorded in Q3 2025 and was 49.93 per cent higher than the N3.24 trillion paid in Q4 2024.

The country’s total public debt stood at N159.35 trillion as of March 31, 2026, compared with N159.28 trillion at the end of December 2025.

The Nigerian Economic Summit Group has previously warned that Nigeria remains exposed to significant debt risks despite improvements in some fiscal indicators, citing weak revenue generation, structural economic challenges and continued reliance on borrowing to fund budget deficits and government expenditure.

The DMO said the country’s overall debt portfolio remained broadly stable, although there was a slight shift towards domestic borrowing during the period.