Nigeria’s external debt service payments for the first half of 2026 fell by 21.5% to $1.82 billion, down from $2.32 billion in the same period of 2025. According to the Debt Management Office (DMO), the decline was largely driven by a 50.7% reduction in principal repayments. However, interest costs rose by 12.2% to $1.11 billion, now accounting for 61.1% of total external debt servicing. Commercial creditors, primarily Eurobond investors, remained the largest beneficiaries, receiving $827.54 million, or 45.4% of total payments. Meanwhile, Nigeria’s total external debt stock increased to $54.52 billion as of June 2026, up from $46.98 billion in June 2025. The shift highlights a trend of rising interest burdens despite a temporary reduction in total debt-servicing outflows.