The Federal Government’s securitised Ways and Means debt fell by ₦613.34bn in the second quarter of 2026, even as Nigeria’s total public debt rose to ₦166.79tn by the end of June.
According to the latest figures from the Debt Management Office, the Ways and Means balance fell by 2.70 per cent from ₦22.72tn in March to ₦22.11tn in June. This marked the first decline in the obligation since the Federal Government securitised advances from the Central Bank of Nigeria and added them to the public debt stock in 2023.
Ways and Means Advances are short-term financing facilities provided by the CBN to help the Federal Government address temporary funding shortages when revenue is insufficient to meet its obligations. The outstanding advances were securitised in 2023 following approval by the National Assembly, making them part of the country’s domestic debt.
Despite the decline in the Ways and Means balance, Nigeria’s overall debt position increased during the quarter. Total public debt grew by ₦7.44tn, or 4.67 per cent, from ₦159.35tn in March to ₦166.79tn at the end of June, according to the DMO.
Domestic debt accounted for the larger portion of the total debt stock at ₦91.59tn, representing 54.91 per cent of total public debt, while external debt stood at ₦75.20tn, or 45.09 per cent. Domestic liabilities increased by ₦4.19tn between March and June, while external debt rose by ₦3.25tn in naira terms.
Within the Federal Government’s domestic debt portfolio, FGN bonds stood at ₦64.84tn at the end of June. This comprised ₦41.47tn in conventional naira bonds, ₦22.11tn in securitised Ways and Means and ₦1.27tn in domestic dollar bonds.
The overall debt stock also recorded a significant year-on-year increase, rising by ₦14.39tn, or 9.44 per cent, from ₦152.40tn in June 2025 to ₦166.79tn in June 2026.
In dollar terms, total public debt increased from $99.66bn to $120.93bn, representing a rise of $21.27bn, or 21.35 per cent. The DMO noted that the difference between the naira and dollar movements was partly influenced by changes in the exchange rate used to convert the debt figures. The official exchange rate used by the DMO stood at ₦1,379.1842/$ in June 2026, compared with ₦1,529.2105/$ a year earlier.
The Federal Government accounted for most of the debt stock, with domestic liabilities of about ₦87tn and external obligations of ₦65.77tn at the end of June, while states and the Federal Capital Territory accounted for the remaining liabilities.