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Nigeria’s Ministry of Finance dismissed public commentary claiming that federal interest payments consumed 124 per cent of government revenue in the first half of 2026.
Clarifying figures from the World Bank’s October 2026 Nigeria Development Update, the ministry stated that the actual debt-service-to-revenue ratio sits near 60 per cent, describing the reported 124 per cent figure as misleading due to mismatched data and incomplete revenue calculations.
Ministry officials explained that the 124 per cent metric incorrectly compares federal debt obligations—which include subnational loans serviced for state governments—against federal revenues alone.
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The calculation also excludes earned independent agency revenues awaiting treasury remittance and ignores seasonal tax surges that occur during the second half of the fiscal year.
The ministry noted that a similar H1 spike of 156 per cent in 2025 normalised below 60 per cent for the full year, down from 97 per cent prior to recent economic reforms.
Despite mismatched metrics, official data highlights significant fiscal improvement between the first halves of 2025 and 2026.
Federal revenues expanded 72 per cent from ₦3.6 trillion to ₦6.2 trillion, outpacing a 38 per cent rise in interest costs from ₦5.6 trillion to ₦7.7 trillion.
The ministry reaffirmed that all public borrowing complies with the Fiscal Responsibility Act 2007, the Debt Management Office Act 2003, and National Assembly approvals under the 2026 Appropriation Act, while full-year 2026 debt servicing is projected at 46 per cent of total revenue.
