Finance Ministry says the calculation presents an incomplete picture, while reported interest payments continue to raise questions about the country’s finances
UNITY TIMES BUSINESS DESK
Grow your business with us
The Federal Government has challenged a World Bank-linked assessment that Nigeria’s debt interest payments reached 124 per cent of revenue in the first half of 2026, arguing that the figure does not accurately reflect the country’s full fiscal position.
The World Bank figures, reported by Nigerian media, put interest payments at about ₦7.7 trillion against revenue of approximately ₦6.2 trillion between January and June 2026.
In its response on October 18, the Federal Ministry of Finance described the comparison as misleading, arguing that it juxtaposed interest obligations with an incomplete revenue base and included debt servicing undertaken by the Federal Government on behalf of other tiers of government.
The disagreement highlights a critical question for Nigeria’s economy: how much of government revenue is available for public services and development after debt obligations are met?
Although the government disputes the interpretation of the ratio, the figures have renewed scrutiny of borrowing costs, revenue collection and the sustainability of public expenditure.
For households and businesses already contending with high living costs, the debate matters because fiscal pressure can constrain government investment in infrastructure, education, healthcare and social protection.
The next step is a transparent reconciliation of the figures, including the revenue categories and debt obligations used in the respective calculations. That would help Nigerians understand both the scale of the burden and the progress being made in managing it.
About The Author