The Debt Management Office (DMO) has corrected reports that claimed the Federal Government spent N611.71 billion in March 2025 servicing its domestic U.S. dollar bond.
The agency said the actual figure for the bond was N67.99 billion.
In a statement, the DMO explained that the N611.71 billion represented debt service for all outstanding Federal Government of Nigeria (FGN) bonds in March, excluding the dollar bond.
“The statement is wrong in its entirety,” the agency said. “The figure on our website for Q1 2025 debt service on the U.S. dollar bond was N67.988 billion and not N611.71 billion.”
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The DMO stressed that its publications clearly separate the figures. “For the avoidance of doubt, the Q1 2025 Domestic Debt Service for FGN Bonds in March 2025 was N611.71 billion. On a separate line, the debt service for the U.S. dollar bond was N67.988 billion,” it added.
The agency also dismissed reports that the government had repaid part of the bond’s principal. It explained that repayment will only take place at maturity in 2029.
Nigeria issued its first domestic U.S. dollar bond in September 2024. The bond raised over $900 million with an oversubscription of more than 180 percent. It carries a 9.75 percent yield and a five-year tenor. The Federal Government earmarked proceeds for critical infrastructure projects.
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The bond, approved under a Presidential Executive Order, enables the government to raise capital in dollars from Nigerian residents, institutional investors, and the diaspora community.
Although denominated in dollars, the bond is issued and traded locally. It is listed on the Nigerian Exchange Limited (NGX) and the FMDQ Securities Exchange.
The DMO noted that the bonds are fully backed by the Federal Government. By offering dollar instruments locally, it hopes to attract domestic investors, deepen Nigeria’s financial market, and fund infrastructure without relying heavily on external markets.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.
