ABUJA — The Federal Government has pushed back against claims by the World Bank that interest payments swallowed 124 percent of federal revenue in the first half of 2026, describing the figures as an inaccurate representation of the country’s fiscal position.
In an official statement responding to the latest Nigeria Development Update (NDU), the Ministry of Finance rejected the use of a six-month fiscal snapshot as a definitive measure of debt sustainability, insisting that full-year projections provide a more accurate evaluation.
The Ministry clarified that the World Bank’s calculation comparing debt service to revenue relied on mismatched data levels. Specifically, the reported interest figures included payments made by the Federal Government on behalf of state governments, while omitting independent revenues generated by federal agencies and public enterprises that are yet to be remitted to the Treasury.
Highlighting full-year benchmarks, economic authorities noted that the same World Bank report projects Nigeria’s full-year 2026 debt-service-to-revenue ratio at 46 percent. Government officials underscored that revenues are currently growing almost twice as fast as debt service costs, citing progress from ongoing economic reforms that saw full-year debt service ratios fall below 60 percent in 2025.
The Federal Government further affirmed that all public borrowing remains fully lawful, compliant with the Fiscal Responsibility Act of 2007, and strictly within limits approved by the National Assembly under the 2026 Appropriation Act.
