The Federal Government has faulted the World Bank’s assessment that interest payments exceeded its revenue by 24 percent in the first half of 2026, describing the calculation as misleading.
The Federal Ministry of Finance, in a statement on Sunday, said the figure included interest on loans the Federal Government services on behalf of other tiers of government, including states, while comparing the amount with federal revenue alone.
The ministry also argued that the revenue figure excluded income earned by government agencies and enterprises but not yet remitted to the Treasury. It added that revenue typically rises in the second half of the year due to the timing of certain tax payments.
According to the ministry, federal revenue rose by 72 percent to ₦6.2 trillion in the first half of 2026, from ₦3.6 trillion in the corresponding period of 2025. Interest payments increased by 38 percent, from ₦5.6 trillion to ₦7.7 trillion.
It said the figures showed that revenue was growing faster than interest costs, narrowing the gap between the two from ₦2 trillion to ₦1.5 trillion.
The ministry further argued that debt sustainability should be assessed using full-year figures, citing the World Bank’s projection that Nigeria’s total debt service, covering interest and principal repayments, would amount to 46 percent of revenue in 2026.
However, the World Bank’s October 2026 Nigeria Development Update reported that interest payments reached about 124 percent of federal revenue in the first half of the year. The report also highlighted Nigeria’s improving fiscal position alongside continuing economic and spending challenges.
The ministry maintained that federal borrowing remained within limits approved by the National Assembly and complied with the Fiscal Responsibility Act 2007 and the Debt Management Office (Establishment) Act 2003.
It said it welcomed scrutiny of public finances but urged analysts to compare figures covering the same levels of government and interpret them within the appropriate fiscal context.
