Nigeria's Finance Ministry has rejected findings from the World Bank's October 2026 Nigeria Development Update that interest payments consumed 124 per cent of federal revenue in the first half of 2026. The ministry, led by Finance Minister Taiwo Oyedele, said the calculation was misleading because it relied on incomplete revenue figures and failed to account for debt serviced on behalf of state governments. According to the World Bank, federal revenue stood at 6.2 trillion naira while interest payments reached 7.7 trillion naira during the period, representing a shortfall of 1.5 trillion naira.
The ministry defended the government's fiscal position by pointing to improvements over time. Federal revenue grew 72 per cent from 3.6 trillion naira in the first half of 2025 to 6.2 trillion naira in the same period of 2026, while interest payments rose 38 per cent from 5.6 trillion naira to 7.7 trillion naira. This meant the interest-to-revenue ratio fell by approximately 32 percentage points, from 156 per cent to 124 per cent, the ministry said.
The government also challenged using six-month figures as a measure of debt sustainability. The World Bank's own report projected Nigeria's full-year 2026 debt service, covering both interest and principal, at 46 per cent of revenue, the ministry noted. It added that the full-year debt-service-to-revenue ratio stood below 60 per cent, compared with 97 per cent before current reforms. However, the ministry did not provide alternative revenue or interest payment figures to support its position.