FG disputes World Bank’s N7.7tn interest payments

The Federal Government has disputed the World Bank's claim that Nigeria's interest payments for the first half of 2026 reached 124% of revenue, arguing the figure is misleading. The Federal Ministry of Finance stated that the calculation relied on incomplete revenue data and included debt obligations paid on behalf of state governments.

They noted that Nigeria's fiscal position had improved, with revenue growing faster than interest payments. The ministry dismissed the World Bank's assessment, pointing out that the calculation compared obligations across tiers of government with revenue attributed to the federal government alone. They also pointed out that the revenue figure did not account for income from government agencies and enterprises not yet remitted to the Treasury.

The ministry clarified that the interest-to-revenue ratio for the same period in 2025 was 156%, up from approximately 124% in 2026. They emphasized that the full-year debt-service-to-revenue ratio had fallen below 60%, down from 97% before the current administration's reforms, indicating improved fiscal management. The ministry further stated that the interest-to-revenue ratio had declined by about 32 percentage points, with the gap between interest payments and revenue narrowing from N2tn to N1.5tn.

They rejected the use of a six-month fiscal snapshot as a definitive measure of debt sustainability, arguing that full-year projections were more appropriate. Despite questioning the World Bank's assessment, the ministry did not provide revised figures or an alternative ratio. The World Bank loan of $1.25bn to Nigeria, aimed at supporting reforms to stimulate growth and create jobs, will begin repayment of the principal in December 2031, with the final instalment due in June 2060.