The Federal Ministry of Finance has defended the Federal Government against claims that interest payments on its debt reached 124 per cent of revenue in the first half of 2026, describing the interpretation as misleading.
The ministry made a clarification in a statement published on the official X account of the Minister of Finance, Taiwo Oyedele, on Sunday.
Recall that that there are reports that the Nigerian government’s interest payments on its debt exceeded 124 per cent of its revenue in the first half of 2026, citing the World Bank’s October 2026 Nigeria Development Update.
Reacting, the ministry said the calculation failed to account for differences in the scope of debt obligations and revenue figures, while also overlooking the seasonal pattern of government revenue collection.
The Federal Government noted that the claim did not provide a complete picture of the country’s fiscal position.
It argued that the interest payment figure included debts serviced by the Federal Government on behalf of other tiers of government, including external loans obtained by states, while the revenue figure was limited to federal receipts.
According to the ministry, comparing the two figures without adjusting their coverage overstated the interest-to-revenue ratio.
The ministry stressed that Nigeria’s full-year 2026 debt service, covering both interest and principal repayments, was projected at 46 per cent of revenue.
"Debt sustainability is assessed on a full-year basis, not over six months. The same World Bank report projects Nigeria's full-year 2026 debt service, covering both interest and principal, at 46% of revenue. This is the appropriate benchmark, and a guide to avoid the invalid conclusions being drawn," the statement read.
Providing a year-on-year comparison, the ministry explained that federal revenue increased by 72 per cent, from N3.6 trillion in the first half of 2025 to N6.2 trillion in the corresponding period of 2026.
Interest payments, however, rose by 38 per cent, from N5.6 trillion to N7.7 trillion over the same period.
On borrowing, the ministry maintained that every naira borrowed by the Federal Government fell within the limits approved by the National Assembly under the 2026 Appropriation Act and the approved borrowing plan.
The ministry said government borrowing complied with the Fiscal Responsibility Act 2007 and the Debt Management Office (Establishment) Act 2003, adding that borrowing activities were regularly published by the Debt Management Office.
Why Nigeria’s 124% debt interest-to-revenue ratio under Tinubu is misleading - Finance Ministry