Nigeria's Interest Payments Surpass Revenue by 124% in 2026

In the first half of 2026, Nigeria's Federal Government incurred N7.7 trillion in interest payments, which represented 124.2% of its total revenue of N6.2 trillion, according to the World Bank's October 2026 Nigeria Development Update. This resulted in interest payments exceeding revenue by N1.5 trillion from January to June 2026, raising concerns about Nigeria's debt burden.

Interest payments increased by N2.1 trillion, or 37.5%, from N5.6 trillion in the same period of 2025, primarily due to high domestic borrowing costs. The interest-to-revenue ratio improved from approximately 155.6% in the first half of 2025 to 124.2% in 2026.

Federal Government revenue rose by N2.6 trillion, or 72.2%, from N3.6 trillion in the first half of 2025, supported by a recovery in oil receipts and stronger corporate tax collections. However, total federal spending increased from N14.6 trillion to N16.1 trillion, with personnel expenditure rising from N3.7 trillion to N4.2 trillion.

Capital expenditure sharply declined, indicating that the government spent significantly more on interest payments than on capital projects.