The Federal Government reduced its securitised Ways and Means debt by ₦613.34 billion in the second quarter of 2026, marking the first decline in the obligation since it was incorporated into Nigeria’s public debt stock in 2023.
Figures from the Debt Management Office showed that the outstanding balance declined by 2.70 per cent, from ₦22.719 trillion in March to ₦22.106 trillion at the end of June.
The reduction coincided with the expiration of the three-year moratorium on principal repayments established when the Ways and Means obligation was securitised. Pasted markdown
Ways and Means Advances are temporary financing facilities provided by the Central Bank of Nigeria to the Federal Government to cover revenue shortfalls.
₦22.1tn Still Outstanding
Despite the quarterly reduction, the outstanding securitised Ways and Means balance remains substantial.
At the end of June, the ₦22.106 trillion obligation represented 25.41 per cent of the Federal Government’s ₦86.999 trillion domestic debt.
It also accounted for 34.09 per cent of the ₦64.839 trillion Federal Government bond portfolio.
The bond portfolio comprised ₦41.468 trillion in conventional naira-denominated bonds, ₦22.106 trillion in securitised Ways and Means and ₦1.265 trillion in domestic dollar bonds. Pasted markdown
Overall Public Debt Still Rising
The decline in Ways and Means came against a wider increase in Nigeria’s overall debt stock.
DMO figures showed that total public debt climbed from ₦152.40 trillion in June 2025 to ₦166.79 trillion by June 2026.
That represents a year-on-year increase of ₦14.39 trillion, or 9.44 per cent.
Measured in US dollars, public debt increased more sharply, rising by $21.27 billion from $99.66 billion to $120.93 billion over the same period. Pasted markdown
The figures mean the reduction in the CBN-linked obligation has not yet translated into a decline in Nigeria’s overall public debt.
Going forward, attention will remain on government borrowing, revenue mobilisation and debt-servicing requirements as authorities seek to finance public expenditure without creating unsustainable fiscal pressure.
