The Federal Government’s securitised Ways and Means liability fell by N613.34 billion in the second quarter of 2026, marking the first reduction since the facility was converted into public debt in 2023.
Debt Management Office data show the balance declined 2.70 per cent from N22.719 trillion at the end of March to N22.106 trillion at the end of June. The drop coincided with the expiry of a three-year moratorium on principal repayments that was agreed when the Central Bank advances were securitised.
Ways and Means Advances are short-term facilities the Central Bank extends to the Federal Government to bridge temporary revenue gaps. Even after the reduction, the stock still accounted for 25.41 per cent of the Federal Government’s N86.999 trillion domestic debt and 34.09 per cent of its N64.839 trillion FGN bond portfolio at the end of June.
Within the bond portfolio, conventional naira bonds stood at N41.468 trillion, the securitised Ways and Means portion at N22.106 trillion, and domestic dollar bonds at N1.265 trillion.
### Broader Debt Continues to Climb
The modest improvement in the CBN-linked obligation occurred against a backdrop of rising overall public debt. Total public debt increased by N14.39 trillion, or 9.44 per cent, from N152.40 trillion in June 2025 to N166.79 trillion at the end of June 2026.
In dollar terms the rise was steeper. The stock jumped $21.27 billion, or 21.35 per cent, from $99.66 billion to $120.93 billion over the same period. The difference largely reflects the stronger naira exchange rate applied in the June 2026 valuation (N1,379.1842/$) compared with a year earlier (N1,529.2105/$).
On a quarterly basis, total debt rose by N7.44 trillion, or 4.67 per cent, between March and June. Domestic liabilities remained the larger share at N91.59 trillion (54.91 per cent of the total), while external debt stood at N75.20 trillion (45.09 per cent).
Domestic debt grew by N11.04 trillion, or 13.70 per cent, year-on-year. External debt increased by $7.54 billion, or 16.05 per cent, over the same period, though its naira value rose more modestly because of the exchange-rate effect.
The Federal Government continues to account for the overwhelming majority of the portfolio. Its domestic debt reached N87 trillion in June, while states and the FCT together owed N4.59 trillion domestically. Federal external liabilities stood at N65.77 trillion, compared with N9.42 trillion owed externally by states and the FCT.
The first reduction in the securitised Ways and Means balance after the moratorium ended shows that principal repayments have begun. At the same time, the continued expansion of overall public debt driven especially by domestic instruments—indicates that the broader fiscal financing challenge remains substantial.
