Nigeria's Finance Ministry Disputes World Bank Debt Claims

The Federal Ministry of Finance of Nigeria has challenged the World Bank's assertion that Nigeria's interest payments constituted 124% of revenue in the first half of 2026. The ministry stated that the World Bank's calculation compares federal revenue to interest payments that include debts serviced on behalf of states, which is misleading.

It emphasized that the reported revenue excludes independent earnings from government agencies not yet remitted to the Treasury. The ministry reported a 72% increase in federal revenue to N6.2 trillion, while interest payments rose by 38% to N7.7 trillion.

Consequently, the interest-to-revenue ratio decreased from 156% to 124%, indicating that revenue growth is outpacing interest costs. The ministry argued that debt sustainability should be assessed annually rather than semi-annually and cited projections indicating a full-year 2026 debt service ratio of 46% of revenue.

It affirmed that all federal borrowing is lawful and within limits set by the National Assembly under the 2026 Appropriation Act.