Nigeria's Federal Government has challenged the World Bank's assessment of the country's debt position, disputing a calculation showing that interest payments consumed 124 per cent of federal revenue in the first half of 2026. The Federal Ministry of Finance said the World Bank's October 2026 Nigeria Development Update relied on incomplete revenue figures and failed to account for debt the Federal Government services on behalf of state governments. The ministry, through a statement shared by Finance Minister Taiwo Oyedele, argued that the analysis was misleading and did not reflect the true state of the nation's fiscal health.
According to the World Bank's October 2026 Nigeria Development Update, federal revenue stood at N6.2 trillion in the first half of 2026, while interest payments reached N7.7 trillion. The gap of N1.5 trillion between the two figures produced the 124 per cent ratio that has drawn concern about debt sustainability. However, the ministry contended that the calculation compared obligations covering multiple tiers of government against revenue attributed solely to the Federal Government, saying this approach overstates the true ratio and is only meaningful when debt and revenue are measured at the same level of government.
The ministry highlighted improvements in Nigeria's fiscal position to support its rejection of the World Bank findings. Federal revenue increased by 72 per cent from N3.6 trillion in the first half of 2025 to N6.2 trillion in the same period of 2026, the ministry said, while interest payments rose by 38 per cent from N5.6 trillion to N7.7 trillion. This means the interest-to-revenue ratio declined by approximately 32 percentage points, from 156 per cent to 124 per cent, even as the gap between interest and revenue narrowed from N2 trillion to N1.5 trillion. The ministry said the full-year debt-service-to-revenue ratio was below 60 per cent, compared with 97 per cent before the current administration's reforms, describing the reduction as evidence of progress.
The ministry also faulted the use of first-half figures as a measure of annual debt sustainability, arguing that statutory payment schedules meant certain taxes were collected predominantly in the second half of the year. It added that reported revenue excluded income already earned by government agencies and enterprises but not yet remitted to the Treasury. The same World Bank report, the ministry noted, projected Nigeria's full-year 2026 debt service at 46 per cent of revenue, which it said was the appropriate benchmark for assessing debt sustainability. The ministry defended the government's borrowing programme as lawful and within limits authorised by the National Assembly, stating that all loans complied with relevant legislation and that debt details were regularly published by the Debt Management Office.
Despite challenging the World Bank's revenue figures and the basis of the debt-interest calculation, the ministry did not provide revised revenue and interest payment figures or an alternative ratio to substantiate its position.