The Federal Government has rejected concerns that Nigeria’s ₦7.7 trillion interest payments in the first half of 2026 indicate a threat to the country’s debt sustainability.
The Federal Ministry of Finance was responding to the World Bank’s October 2026 Nigeria Development Update, which put the Federal Government’s interest-to-revenue ratio at 124 per cent for the first half of the year.
The ministry described the figure as misleading, arguing that the calculation used incomplete revenue data while including debt obligations serviced by the Federal Government on behalf of states.
It also said the revenue figure excluded income already earned by government agencies and enterprises but not yet remitted to the Treasury, while some taxes are predominantly collected in the second half of the year.
According to the ministry, federal revenue increased by 72 per cent from ₦3.6 trillion in the first half of 2025 to ₦6.2 trillion in the corresponding period of 2026.
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Interest payments, however, increased by 38 per cent from ₦5.6 trillion to ₦7.7 trillion during the same period.
The ministry says this means revenue is growing faster than interest costs, with the interest-to-revenue ratio declining from 156 per cent in the first half of 2025 to 124 per cent in 2026.
It further argued that debt sustainability should be assessed on a full-year basis, noting that the World Bank projects Nigeria’s total debt service, including interest and principal, at 46 per cent of revenue for the full year 2026.
The Federal Government maintains that its borrowing remains within limits approved by the National Assembly and complies with existing fiscal and debt management laws.
