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

The Federal Government of Nigeria has defended its debt position against the World Bank's warning about ₦7.7 trillion spent on interest payments in the first half of 2026. The government, through the Federal Ministry of Finance and Minister Taiwo Oyedele, rejected the World Bank's claim that interest payments represented 124 per cent of federal revenue, labeling it misleading due to incomplete revenue data and inclusion of debts serviced for state governments.

The ministry highlighted that the interest-to-revenue ratio decreased from 156 per cent in the first half of 2025 to 124 per cent in 2026, indicating improved financial health. It reported a 72 per cent increase in government revenue from ₦3.6 trillion to ₦6.2 trillion, while interest payments rose by 38 per cent.

The ministry argued that the gap between interest payments and revenue narrowed from ₦2 trillion to ₦1.5 trillion, suggesting that revenue growth outpaced debt servicing costs. It emphasized that full-year assessments should be used for evaluating debt sustainability, citing a projected 46 per cent debt service-to-revenue ratio for 2026.