N611bn Spent to Service FG’s Dollar Bond in March – DMO
The Debt Management Office (DMO) has disclosed that the federal government spent a staggering N611.71 billion in March 2025 to service its first-ever dollar-denominated bond issued in the domestic market.
This payment, according to DMO’s report titled ‘Actual Domestic Debt Service for January to March’, accounted for 47.05 per cent of the total N1.3 trillion spent on domestic debt servicing during the month. It also represented 23.4 per cent of the N2.61 trillion spent on domestic debt servicing in the entire first quarter of 2025.
The dollar-denominated bond, introduced in August 2024, saw the federal government offering $500 million for subscription at $1,000 per unit. Despite the initial offering, the government eventually raised $900 million, recording a 180 per cent oversubscription.
“The issuance of this inaugural Domestic FGN US Dollar Bond demonstrates that investors, as well as Nigerians, continue to have faith in the country’s economy,” Wale Edun, minister of finance and coordinating minister of the economy, said at the time.
DMO noted that an interest payment of $44.97 million was due on March 6 and was converted using the official exchange rate of N1,511.80/$, translating to N67.98 billion. However, the total debt service cost for the bond in March was far higher, reaching N611.71 billion.
According to Edun, the bond proceeds are being channelled to key sectors of the economy as approved by President Bola Tinubu.
