Finance Ministry Disputes World Bank’s 124% Debt Interest-to-Revenue Figure
Oluwatobi Adu 
Minister of Finance, Taiwo Oyedele
ABUJA, Nigeria – The Federal Ministry of Finance has disputed a World Bank report that Nigeria’s federal government spent 124 per cent of its revenue on interest payments in the first half of 2026, arguing that the calculation excludes some government revenue and includes debt serviced on behalf of states.
In a statement issued on Sunday, the ministry said the comparison was misleading because it measured federal debt obligations against federal revenue alone, despite the inclusion of external loans serviced by the Federal Government for other tiers of government.
The response follows the World Bank’s October 2026 Nigeria Development Update, which reported that federal interest payments reached 124 per cent of revenue between January and June.
The ministry also argued that the revenue figure excluded independent revenue earned by government agencies and enterprises but not yet remitted to the Treasury.
To support its position, the ministry compared revenue and interest payments in the first halves of 2025 and 2026. It said federal revenue rose by 72 per cent, from ₦3.6 trillion to ₦6.2 trillion, while interest payments increased by 38 per cent, from ₦5.6 trillion to ₦7.7 trillion.
Consequently, the ministry said the interest-to-revenue ratio fell from 156 per cent in the first half of 2025 to 124 per cent in the corresponding period of 2026.
It added that the gap between revenue and interest payments narrowed from ₦2 trillion to ₦1.5 trillion, describing the figures as evidence that economic reforms were improving revenue performance relative to debt servicing costs.
The ministry also defended the Federal Government’s borrowing, saying all loans were within limits approved by the National Assembly. “Every naira borrowed by the Federal Government falls within the limits approved by the National Assembly under the 2026 Appropriation Act and the approved borrowing plan,” the statement said.
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Mirian Gom 
