FG debunks World Bank’s report that Nigeria paid 124% of revenue as debt service
Abuja. Oct 2026 – The federal government has debunked a report by the World Bank that it paid 124% of its revenue in the first half of 2026 on debt servicing.
The ministry of finance denied the report in a statement on Sunday, describing the report as misleading.
It said, rather, the country’s full-year 2026 debt service, covering both interest and principal, is projected at 46 per cent of revenue which is the appropriate benchmark for assessing the country’s debt-service burden.
The statement said the World Bank report compared mismatched interest figures against an incomplete revenue base.
It also said the 124 per cent interest calculation included the debt service by the federal government on behalf of other tiers of government, including external loans to states.
“Measuring this against federal revenue alone overstates the ratio, which is only meaningful when debt and revenue cover the same level of government,” it said.
The statement also said the reported revenue was incomplete as it excluded the independent revenue earned by government agencies and enterprises, but not yet remitted to the treasury.
“In addition, more revenue is typically earned in the second half of the year than in the first due to the statutory timing of certain payments.
“This is why the ratio stood at 156% in H1 2025, while the full-year 2025 debt service-to-revenue ratio was below 60%, down from 97% before the reforms
“The interest-to-revenue ratio fell by 32 percentage points in a single year, from 156% to 124%, and the gap between interest and revenue narrowed from ₦2.0 trillion to ₦1.5 trillion,” the ministry said.
The ministry attributed the changes to the current administration’s economic reforms, arguing that revenue is growing faster than interest costs.
It argued that a six-month figure alone should not be used to evaluate the sustainability of government debt.
“Debt sustainability is assessed on a full-year basis, not over six months,” the statement said.
The statement said Nigeria’s full-year 2026 debt service, covering both interest and principal, is projected at 46 per cent of revenue, and that this forecast is the appropriate benchmark for assessing the country’s debt-service burden.
It stressed that all borrowing falls within the limits approved by the National Assembly under the 2026 Appropriation Act and the approved borrowing plan, in compliance with the Fiscal Responsibility Act 2007 and the Debt Management Office (Establishment) Act 2003.
