Introduction

Nigeria’s securitised Ways and Means debt has logged its first quarterly decline since being folded into the public debt system in 2023, signaling a major shift after three years of static balances.

What Happened

Debt Management Office data shows the securitised balance fell to N22.106 trillion as of June 30, 2026, from N22.719 trillion at March end—a 2.70% quarter-on-quarter drop, the first since securitisation. This decline aligns with the expiry of a three-year principal repayment moratorium granted in 2023 when N22.719 trillion of Central Bank of Nigeria advances were converted into long-term FGN securities. The restructuring introduced a 40-year tenure, a fixed 9% annual interest rate, and a scheduled amortisation over the remaining 37 years, replacing the previous cost structure tied to the Monetary Policy Rate plus three percentage points.

Why This Matters

The reduction matters because it shifts Nigeria’s debt servicing profile, introducing structured principal repayments alongside interest obligations and affecting fiscal planning and cash flow. It also removes the debt from the unseen short-term advance category, making it fully visible in official reports and influencing investor perception of borrowing risk. With total public debt reaching N166.79 trillion as of June 2026—domestic debt comprising over half—the securitised Ways and Means balance now represents 25.41% of total federal government domestic debt and 34.09% of all FGN bonds outstanding, highlighting its significance in the broader financing landscape.

Key Takeaways

  • The securitised Ways and Means debt fell by N613.34 billion in Q2 2026, the first reduction since 2023.
  • The outstanding balance dropped to N22.106 trillion from N22.719 trillion, a 2.70% quarter-on-quarter decline.
  • The reduction was triggered by the expiration of the three-year principal repayment moratorium.
  • Securitisation converted CBN advances into 40-year FGN securities at 9% fixed interest, replacing higher-cost short-term borrowing.
  • Nigeria’s total public debt rose to N166.79 trillion, with domestic debt comprising 54.91% of the portfolio.
  • The securitised balance now makes up 25.41% of total domestic debt and 34.09% of all FGN bonds.

Conclusion

As Nigeria’s debt structure continues to evolve, the expiration of the Ways and Means moratorium marks a new phase in fiscal management. Stakeholders will watch how the structured amortisation affects budget execution and whether future borrowing patterns shift away from reliance on central bank advances. Coming quarters will provide clearer insight into the long-term impact of this major debt restructuring.