The Federal Government has faulted the World Bank’s assessment of Nigeria’s debt burden, arguing that its reported 124 per cent interest-to-revenue ratio for the first half of 2026 does not reflect the country’s full fiscal position.
The Federal Ministry of Finance said the analysis was based on incomplete revenue figures and included debt obligations the Federal Government services on behalf of state governments.
The World Bank, in its October 2026 Nigeria Development Update, had raised concerns about Nigeria’s debt servicing and revenue position after interest payments reached ₦7.7tn in the first six months of the year.
However, the ministry said the calculation compared federal interest payments, including obligations for other tiers of government, with federal revenue alone, thereby overstating the ratio.
It also argued that the reported revenue excluded income earned by government agencies and enterprises but not yet remitted to the Treasury.
According to the ministry, the timing of tax payments also makes first-half figures an incomplete measure of the government’s annual revenue performance, as some taxes are predominantly collected in the second half of the year.
The ministry cited figures showing that federal revenue rose by 72 per cent, from ₦3.6tn in the first half of 2025 to ₦6.2tn in the corresponding period of 2026.
Interest payments, it said, increased by 38 per cent, from ₦5.6tn to ₦7.7tn over the same period.
It added that the interest-to-revenue ratio consequently fell from 156 per cent in the first half of 2025 to 124 per cent in the first half of 2026, while the gap between interest payments and revenue narrowed from ₦2tn to ₦1.5tn.
The ministry described the figures as evidence that the government’s economic reforms were yielding results rather than indicating fiscal distress.
It further maintained that debt sustainability should be assessed using full-year figures, not data covering only six months.
Citing the World Bank’s projections, the ministry said Nigeria’s full-year 2026 debt service, including both interest and principal repayments, was expected to account for 46 per cent of revenue.
It also said federal borrowing complied with limits approved by the National Assembly under the 2026 Appropriation Act and the approved borrowing plan.
The ministry added that borrowing was conducted in accordance with the Fiscal Responsibility Act 2007 and the Debt Management Office (Establishment) Act 2003, with details published regularly by the Debt Management Office.
While welcoming scrutiny of public finances, the ministry urged analysts to compare figures covering the same levels of government and interpret fiscal data in context.
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