The Federal Government has challenged the World Bank’s assessment of Nigeria’s debt burden, describing as misleading claims that interest payments consumed 124 per cent of its revenue in the first half of 2026.
The Federal Ministry of Finance argued that the figures presented an incomplete picture of the country’s financial position, insisting that revenue was growing faster than interest costs.
The disagreement follows the World Bank’s October 2026 Nigeria Development Update, which reported that the Federal Government spent ₦7.7 trillion on interest payments between January and June 2026, against revenue of ₦6.2 trillion.
The figures indicate that interest payments exceeded the government’s reported revenue by ₦1.5 trillion during the six-month period. <Cite refs={[“turn756117news8”,“turn756117search4”]}/>
In a statement issued on Sunday and shared by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, the ministry outlined three reasons it considered the assessment misleading.
According to the ministry, the calculation included debt obligations serviced by the Federal Government on behalf of other tiers of government, including external loans obtained by states, while comparing them against federal revenue alone.
It also argued that the revenue figures excluded income already earned by government agencies and enterprises but not yet remitted to the Treasury.
The ministry further explained that some tax payments are concentrated in the second half of the year, making a six-month assessment insufficient to determine the country’s overall debt sustainability.
FG cites improvement in revenue performance
To support its position, the ministry said Federal Government revenue increased by 72 per cent, from ₦3.6 trillion in the first half of 2025 to ₦6.2 trillion during the corresponding period of 2026.
Interest payments, meanwhile, rose by 38 per cent, from ₦5.6 trillion to ₦7.7 trillion.
The ministry maintained that the interest-to-revenue ratio had consequently declined from 156 per cent in the first half of 2025 to approximately 124 per cent in the first half of 2026.
It attributed the improvement to the administration’s economic reforms, arguing that revenue was expanding more rapidly than interest expenses.
The ministry also cited the World Bank’s projection that Nigeria’s full-year 2026 debt service, covering both interest and principal repayments, would amount to 46 per cent of revenue.
It insisted that a full-year assessment offered a more appropriate basis for evaluating debt sustainability than figures covering only six months. <Cite refs={[“turn756117search3”,“turn756117search5”]}/>
Government defends borrowing
The Federal Government also defended its borrowing programme, maintaining that loans obtained under the current administration were lawful and within the limits approved by the National Assembly.
It said its borrowing complied with the Fiscal Responsibility Act 2007 and the Debt Management Office (Establishment) Act 2003, adding that information on the country’s debt obligations was regularly published.
However, the ministry did not provide revised revenue and interest-payment figures or an alternative ratio to substantiate its objections to the World Bank’s assessment.
The dispute has renewed attention on Nigeria’s debt burden, the cost of servicing government loans and the extent to which rising revenue can ease pressure on public finances.
