The Federal Ministry of Finance has disputed claims that the Federal Government’s interest payments reached 124 per cent of its revenue in the first half of 2026, describing the interpretation of the figures as misleading. In a statement issued in Abuja on Sunday, the ministry said the analysis, which cited…...
The Federal Ministry of Finance has disputed claims that the Federal Government’s interest payments reached 124 per cent of its revenue in the first half of 2026, describing the interpretation of the figures as misleading.
In a statement issued in Abuja on Sunday, the ministry said the analysis, which cited the World Bank’s October 2026 Nigeria Development Update, compared mismatched figures and relied on an incomplete revenue base.
The ministry explained that the interest payment figure included debt serviced by the Federal Government on behalf of other tiers of government, including external loans to states, while the revenue figure excluded independent revenue earned by government agencies and enterprises but not yet remitted to the Treasury.
It also said revenue generation typically increases in the second half of the year because of the statutory timing of certain tax payments.
The ministry noted that the debt-service-to-revenue ratio stood at 156 per cent in the first half of 2025, while the full-year 2025 ratio was below 60 per cent, compared with 97 per cent before the current administration’s reforms.
“This is a clear sign of the progress delivered by the current administration’s reforms,” the statement said.
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, while interest payments increased by 38 per cent, from ₦5.6 trillion to ₦7.7 trillion.
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It said revenue was growing almost twice as fast as interest costs, adding that the interest-to-revenue ratio fell by 32 percentage points, from 156 per cent to 124 per cent, within one year.
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The ministry also said the gap between interest payments and revenue narrowed from ₦2 trillion to ₦1.5 trillion over the period.
“This is the result of reforms working, not a sign of fiscal distress,” it stated.
On debt sustainability, the ministry argued that a six-month snapshot was insufficient to assess the country’s fiscal position, insisting that the assessment should be based on full-year figures.
It cited the World Bank’s projection that Nigeria’s total debt service, covering both interest and principal repayments, would amount to 46 per cent of revenue for the full year 2026.
“This is the appropriate benchmark, and a guide to avoid the invalid conclusions being drawn,” the ministry said.
The ministry further maintained that all Federal Government borrowing was lawful and approved by the National Assembly under the 2026 Appropriation Act and the approved borrowing plan.
It said borrowing activities complied with the Fiscal Responsibility Act 2007 and the Debt Management Office (Establishment) Act 2003, adding that borrowing information was regularly published by the Debt Management Office.
While welcoming scrutiny of public finances, the ministry urged analysts and commentators to compare like with like, interpret figures in context and seek clarification where data was unclear.