Nigeria’s promissory notes fell sharply by 15.6% between December 2024 and March 2025, according to the Debt Management Office (DMO).
The notes declined from ₦1.542 trillion to ₦1.301 trillion, reflecting a renewed push by the Federal Government to settle verified financial obligations.
The Office of the Accountant General confirmed that the government has begun settling debts owed to contractors across Ministries, Departments, and Agencies (MDAs).
“Efforts are underway to pay for contracts duly awarded and completed according to specifications,” it said.
The DMO noted that this move is helping to restore investor confidence and reduce systemic risk in the economy.
However, this drop also signals limited fresh issuances, as the government grapples with revenue shortfalls and rising debt costs.
Risk of Default Grows as CBN Tightens Access
In January, reports emerged that the Central Bank of Nigeria (CBN) had declined further overdraft requests from the FG.
This left the government struggling to redeem maturing promissory notes and other obligations.
Without alternative funding, some promissory notes due imminently could face the risk of default, a senior finance official warned.
Director-General of the DMO, Patience Oniha, said Nigeria’s growing debt burden stems largely from spending beyond revenue.
“What triggers debts… is because when the debt stock is growing, debt service also grows,” she said.
She added that “the government has been issuing promissory notes to settle obligations for which it doesn’t really have the revenue.”
Domestic Debt Hits ₦78.76 Trillion, Up 20% in One Year
Nigeria’s domestic debt climbed to ₦78.76 trillion at the end of March 2025.
This marks a ₦13.11 trillion increase year-on-year, or a 20% rise from March 2024.
Quarter-on-quarter, it grew by ₦4.38 trillion, from ₦74.38 trillion in December.
FGN bonds rose to ₦59.8 trillion, Treasury Bills to ₦12.7 trillion, and FGN Savings Bonds to ₦82.7 billion.
Nigeria’s external debt stood at ₦70.63 trillion as of March 2025.
This represents a 26.1% year-on-year jump, from ₦56.02 trillion in March 2024.
Compared to December, the debt rose marginally by ₦344 billion, or 0.5%.
The burden of repaying these loans continues to grow, worsened by the falling value of the naira.
Borrowings include loans from the World Bank, African Development Bank, and commercial investors such as Eurobond holders.
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