Nigeria's Finance Ministry Rejects World Bank's Debt Claims

The Federal Ministry of Finance has refuted claims made in the World Bank’s October 2026 Nigeria Development Update, which stated that Nigeria's interest payments reached 124 percent of its revenue in the first half of 2026. The ministry described this conclusion as misleading, arguing that it compares federal revenue against total debt service, which includes obligations paid on behalf of state governments.

The ministry clarified that first-half revenue was N6.2 trillion, while interest payments totaled N7.7 trillion. It noted that revenue collection traditionally increases in the second half of the year and that the reported figures exclude income from government agencies not yet remitted to the treasury.

The ministry highlighted a 72 percent growth in federal revenue from N3.6 trillion in H1 2025 to N6.2 trillion in H1 2026, while interest payments grew by 38 percent. The interest-to-revenue ratio dropped by 32 percentage points year-on-year, and the deficit gap narrowed from N2.0 trillion to N1.5 trillion.

The ministry reassured that all borrowing complies with limits set by the National Assembly under the 2026 Appropriation Act.