Nigeria's Federal Government Challenges World Bank Debt Figures

Nigeria's public finances are under scrutiny as the Federal Government disputes the World Bank's assessment of its debt burden. The World Bank's Nigeria Development Update reported that the Federal Government spent ₦7.7 trillion on interest payments in the first half of 2026, against revenue of ₦6.2 trillion, resulting in interest payments at 124.2 percent of federal revenue.

The Federal Ministry of Finance argues that the calculation excludes certain revenues and includes debt serviced for other tiers of government. This disagreement raises questions about Nigeria's debt burden and its impact on financing public services.

The lack of recent budget implementation reports since the third quarter of 2025 limits independent verification of financial data. As of June 2026, Nigeria's total public debt was ₦166.8 trillion, with the Federal Government accounting for ₦152.7 trillion.

Interest and personnel costs made up about 73.9 percent of total expenditure, constraining funds for capital projects. Matilda Adefalujo from Meristem stated that the interest burden reflects structural weaknesses in Nigeria's fiscal position.