The Federal Ministry of Finance said the reported ₦7.7 trillion in interest payments was compared with federal revenue of ₦6.2 trillion without fully accounting for the scope of government obligations and revenue collections.
The ministry argued that the interest figure includes debt serviced by the Federal Government on behalf of other tiers of government, including external loans to states. It also said the revenue figure excluded some income earned by government agencies and enterprises but not yet remitted to the Treasury.
According to the ministry, federal revenue rose by 72 per cent, from ₦3.6 trillion in the first half of 2025 to ₦6.2 trillion in the corresponding period of 2026. Interest payments increased by 38 per cent, from ₦5.6 trillion to ₦7.7 trillion.
The government said the interest-to-revenue ratio had declined from 156 per cent to 124 per cent over the period, while the gap between revenue and interest costs narrowed from ₦2 trillion to ₦1.5 trillion.
It also argued that debt sustainability should be assessed using full-year figures, pointing to a World Bank projection that Nigeria’s total debt service, including interest and principal, would amount to 46 per cent of revenue in 2026.
However, the ministry did not provide revised figures or an alternative ratio to substantiate its objections. The dispute comes amid continued scrutiny of Nigeria’s borrowing costs and public finances.
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The Federal Government has disputed the World Bank’s assessment of Nigeria’s debt interest burden, arguing that the figures do not fully reflect revenue and include obligations serviced on behalf of state governments. The Federal Government has challenged the World Bank’s assessment that Nigeria’s interest payments exceeded its revenue in the first half of 2026, describing the calculation as...
Key takeaways
- The Federal Government has disputed the World Bank’s assessment of Nigeria’s debt interest burden, arguing that the figures do not fully reflect revenue and include obligations serviced on behalf of state governments.
- The Federal Government has challenged the World Bank’s assessment that Nigeria’s interest payments exceeded its revenue in the first half of 2026, describing the calculation as misleading.The Federal Ministry of Finance said the reported ₦7.7 trillion in interest payments was compared with federal revenue of ₦6.2 trillion without fully accounting for the scope of government obligations and revenue collections.The ministry argued that the interest figure includes debt serviced by the Federal Government on behalf of other tiers of government, including external loans to states.
- It also said the revenue figure excluded some income earned by government agencies and enterprises but not yet remitted to the Treasury.According to the ministry, federal revenue rose by 72 per cent, from ₦3.6 trillion in the first half of 2025 to ₦6.2 trillion in the corresponding period of 2026.
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The Federal Government has disputed the World Bank’s assessment of Nigeria’s debt interest burden, arguing that the figures do not fully reflect revenue and include obligations serviced on behalf of state governments. The Federal Government has challenged the World Bank’s assessment that Nigeria’s interest payments exceeded its revenue in the first half of 2026, describing the calculation as...
Who published this story?
Glow 99.1 FM published this story with GlowRy Atuah listed as author.
When was it published?
October 19, 2026
