The Federal Government has rejected the World Bank's assessment that Nigeria paid N7.7tn in interest during the first half of 2026, describing the analysis as misleading. The World Bank's October 2026 Nigeria Development Update stated that Federal Government revenue reached N6.2tn in the same period, meaning interest payments represented approximately 124 per cent of revenue.
The Federal Ministry of Finance said the World Bank's calculation was flawed because it compared interest obligations covering multiple tiers of government against revenue attributed only to the Federal Government. The ministry also argued that the revenue figure excluded income earned by government agencies not yet remitted to the Treasury, and that tax collection patterns meant first-half figures did not reflect annual obligations.
According to the ministry, the interest-to-revenue ratio improved significantly year-on-year. It stood at 156 per cent in the first half of 2025, compared with approximately 124 per cent in the first half of 2026. Federal Government revenue rose 72 per cent, from N3.6tn to N6.2tn, while interest payments increased 38 per cent, from N5.6tn to N7.7tn over the same periods.
The World Bank report projects Nigeria's full-year 2026 debt service, covering both interest and principal, at 46 per cent of revenue, the ministry noted. It said the full-year debt-service-to-revenue ratio had fallen below 60 per cent, compared with 97 per cent before the current administration's reforms.
Separately, Nigeria will begin repaying a $1.25bn World Bank loan from December 2031. The facility comprises a $750m concessional credit and a $500m loan, with repayment periods ending in June 2051 and June 2060 respectively, according to financing agreements signed in October 2026.