FG faults World Bank revenue figures, dismisses debt concerns

The Federal Government has challenged the World Bank's latest Nigeria Development Update, disputing revenue figures and dismissing worries that escalating interest payments could jeopardize Nigeria's debt sustainability. The Federal Ministry of Finance has dismissed as misleading reports that interest payments account for 124 percent of the FG's revenue in the first half of 2026, stating that the calculation used incomplete figures and did not consider debt obligations paid on behalf of state governments.

The ministry explained its position in a statement on Sunday, which was shared by Finance Minister Taiwo Oyedele on social media. The ministry noted that Nigeria's fiscal situation had markedly improved, with government revenue growing faster than interest payments. The Federal Ministry of Finance highlighted three reasons why the World Bank's analysis was misleading: first, the interest payments were calculated against federal revenue alone, while the debt obligations covered multiple tiers of government; second, the revenue figure did not include income already earned but not yet remitted to the Treasury; and third, the interest-to-revenue ratio was lower in 2025 and 2026 compared to previous years due to fiscal reforms.

The ministry also emphasized that full-year projections offered a more accurate measure of debt sustainability than a six-month fiscal snapshot.