The Federal Government has faulted the revenue figures contained in the World Bank’s latest Nigeria Development Update, dismissing concerns that rising interest payments threaten the country’s debt sustainability.
The Federal Ministry of Finance described reports that interest payments consumed 124 per cent of the FG’s revenue in the first half of 2026 as misleading, arguing that the calculation relied on incomplete revenue figures and failed to account for debt obligations serviced on behalf of state governments.
The ministry made its position known in a statement on Sunday, which was shared by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, via his X handle.According to the statement, Nigeria’s fiscal position had improved significantly, with government revenue growing faster than interest payments.
It stated, “The Federal Ministry of Finance has noted recent analysis and public commentary which, citing the World Bank’s October 2026 Nigeria Development Update, claims that Federal Government interest payments reached 124 per cent of revenue in the first half of 2026. This conclusion is misleading, for three reasons.”
The clarification followed reports based on the World Bank’s October 2026 Nigeria Development Update, which disclosed that the FG’s revenue stood at N6.2 trillion in the first half of 2026, while interest payments reached N7.7 trillion.
An independent analysis of the figures by The PUNCH showed that interest payments represented approximately 124.2 per cent of revenue, exceeding government earnings by N1.5tn. The percentage was calculated from the World Bank’s published figures and was not expressly stated in its report.However, the ministry argued that the calculation compared obligations covering multiple tiers of government with revenue attributed solely to the Federal Government
“The interest figure includes debt the Federal Government services on behalf of other tiers of government, including external loans to states. Measuring this against federal revenue alone overstates the ratio, which is only meaningful when debt and revenue cover the same level of government,” it claimed.
The ministry also maintained that the reported revenue excluded income already earned by government agencies and enterprises but not yet remitted to the Treasury.
It explained that statutory payment schedules meant certain taxes were collected predominantly in the second half of the year, making first-half revenue an incomplete basis for assessing annual debt obligations.
According to the ministry, the interest-to-revenue ratio stood at 156 per cent in the first half of 2025, whereas the full-year debt-service-to-revenue ratio was below 60 per cent, compared with 97 per cent before the current administration’s reforms.
It described the reduction as evidence of progress in fiscal management.
The ministry further highlighted that federal revenue increased by 72 per cent from N3.6tn in the first half of 2025 to N6.2tn in the corresponding period of 2026, while interest payments rose by 38 per cent from N5.6tn to N7.7tn.