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The Federal Government has rejected concerns over Nigeria’s rising debt obligations, arguing that the World Bank’s assessment of interest payments and government revenue does not accurately reflect the country’s financial position.
The Federal Ministry of Finance made its position known following a report indicating that the government spent ₦7.7 trillion on interest payments between January and June 2026, compared with revenue of ₦6.2 trillion within the same period.
The figures suggested that interest expenses exceeded federal revenue by approximately ₦1.5 trillion, prompting concerns about the sustainability of Nigeria’s debt. However, the ministry maintained that the conclusion was based on an incomplete assessment of government earnings and financial obligations.
According to the ministry, the calculation included interest payments on loans serviced by the Federal Government on behalf of state governments, while comparing the total against federal revenue alone. It argued that such an approach could produce a misleading picture because the figures covered different levels of government.
The ministry also explained that some revenue generated by government agencies and enterprises had not yet been transferred to the Treasury. It added that certain tax payments were typically received during the second half of the year, making a six-month assessment insufficient to determine the government’s overall annual financial performance.
To support its position, the ministry disclosed that federal revenue increased from ₦3.6 trillion in the first half of 2025 to ₦6.2 trillion in the corresponding period of 2026, representing a 72 per cent rise. Interest payments, however, grew by 38 per cent, moving from ₦5.6 trillion to ₦7.7 trillion.
The Federal Government maintained that the figures reflected an improvement in revenue collection relative to interest costs and defended its borrowing programme, insisting that its loans complied with existing laws and approved borrowing limits. However, the disagreement has renewed attention on the country’s debt burden and the need for transparent reporting of government revenue and expenditure.
