FGN Bonds Dominate Nigeria’s Domestic Debt Portfolio, Says DMO
Bonds account for nearly 80% of N74.89 trillion domestic debt stock as of Q1 2025
ABUJA, Nigeria | July 1, 2025
Federal Government of Nigeria (FGN) bonds continue to form the backbone of the country’s domestic borrowing, making up nearly 80% of the total domestic debt stock, according to new data released by the Debt Management Office (DMO).
The DMO’s Q1 2025 Domestic Debt Report revealed that as of March 31, 2025, the total domestic debt stood at N74.89 trillion, with FGN bonds accounting for N59.8 trillion, or 79.85% of that figure.
Of the bond total, N58.39 trillion was raised through naira-denominated bonds, while the remaining N1.41 trillion came from US dollar-denominated bonds. The dollar bond portion includes a USD 917.4 million issuance in September 2024, converted using the Central Bank of Nigeria’s official exchange rate of ₦1,536.32 per dollar as of the reporting date.
Beyond bonds, the breakdown shows that:
- Nigerian Treasury Bills (NTBs) contributed N12.7 trillion, representing 16.96% of the debt stock.
- FGN Sukuk stood at N992.6 billion (1.33%),
- FGN Savings Bonds totaled N82.6 billion (0.11%),
- and Green Bonds amounted to N15 billion, making up just 0.02%.
Additionally, promissory notes comprised N1.3 trillion or 1.74% of the total domestic debt. This amount included N1.03 trillion in foreign currency (converted at ₦1,536.32 per USD) and N271.4 billion in local currency.
A notable portion of the debt—N22.72 trillion—was attributed to bonds issued to restructure the Central Bank of Nigeria’s Ways and Means Advances, a mechanism that allows the central bank to finance short-term gaps in government spending.
The DMO’s report underscores the government’s sustained reliance on long-term instruments like FGN bonds to finance its domestic obligations, providing a predictable structure for debt servicing while also promoting investor confidence.
As Nigeria continues to grapple with fiscal pressures and macroeconomic uncertainties, the structure and composition of its domestic debt will remain central to discussions around sustainability, inflation control, and future borrowing strategies.
The DMO is expected to release further updates as part of its broader debt transparency agenda.
