The Federal Government has challenged the World Bank’s assessment that interest payments exceeded its revenue in the first half of 2026, insisting that the figures do not accurately reflect Nigeria’s fiscal position.
The Federal Ministry of Finance described the reported interest-to-revenue ratio of 124 per cent as misleading, arguing that the calculation combined debt obligations serviced for other tiers of government with revenue attributed solely to the Federal Government.
The ministry stated its position in a statement on Sunday, shared by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, on his X account.
The dispute followed the World Bank’s October 2026 Nigeria Development Update, which reported that the Federal Government generated ₦6.2tn in revenue during the first half of the year, against interest payments of ₦7.7tn.
An analysis of the figures showed that interest payments exceeded revenue by ₦1.5tn, representing approximately 124.2 per cent of the government’s earnings. The percentage was calculated from the World Bank’s published figures and was not expressly stated in its report.
However, the Finance Ministry argued that the calculation was flawed because the interest figure included debt serviced by the Federal Government on behalf of state governments, particularly external loans.
“The interest figure includes debt the Federal Government services on behalf of other tiers of government, including external loans to states. Measuring this against federal revenue alone overstates the ratio, which is only meaningful when debt and revenue cover the same level of government,” the ministry said.
The ministry also argued that the reported revenue did not capture income already earned by government agencies and enterprises but yet to be remitted to the Treasury.
It added that some taxes were collected predominantly in the second half of the year because of statutory payment schedules, making first-half revenue an incomplete basis for assessing annual debt obligations.
To support its position, the ministry said the interest-to-revenue ratio stood at 156 per cent in the first half of 2025, compared with 124 per cent in the corresponding period of 2026.
It also reported that federal revenue rose by 72 per cent, from ₦3.6tn in the first half of 2025 to ₦6.2tn in the same period of 2026. Interest payments increased by 38 per cent, from ₦5.6tn to ₦7.7tn.
According to the ministry, the figures show that revenue is growing faster than interest payments, while the gap between both narrowed from ₦2tn in the first half of 2025 to ₦1.5tn in the corresponding period of 2026.
“This is the result of reforms working, not a sign of fiscal distress,” the ministry declared.
It further rejected the use of a six-month fiscal snapshot as a definitive measure of debt sustainability, arguing that full-year projections provide a more appropriate basis for evaluating the country’s finances.
“The same World Bank report projects Nigeria’s full-year 2026 debt service, covering both interest and principal, at 46 per cent of revenue. This is the appropriate benchmark, and a guide to avoid the invalid conclusions being drawn,” the statement read.
The ministry also defended the Federal Government’s borrowing programme, maintaining that all loans were lawful and duly approved.
It said government borrowing remained within the limits authorised by the National Assembly under the 2026 Appropriation Act and the approved borrowing plan.
The ministry added that borrowing complied with the Fiscal Responsibility Act 2007 and the Debt Management Office (Establishment) Act 2003, while details of the country’s debt obligations were regularly published by the Debt Management Office.
However, despite challenging the World Bank’s figures and the methodology behind the interest-to-revenue calculation, the ministry did not provide revised revenue and interest payment figures or an alternative ratio to substantiate its position.
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