FG Disputes World Bank Figures on Nigeria’s Debt Burden

In a press release issued in Abuja on Sunday, October 18, the ministry said the figure was based on an incomplete revenue base and a comparison that included debts serviced on behalf of other tiers of government.

“The interest figure includes debt the Federal Government services on behalf of other tiers of government, including external loans to states,” the ministry stated, arguing that comparing such payments with federal revenue alone overstates the ratio.

The ministry disclosed that federal revenue increased by 72 per cent, from ₦3.6 trillion in the first half of 2025 to ₦6.2 trillion in the corresponding period of 2026, while interest payments rose by 38 per cent, from ₦5.6 trillion to ₦7.7 trillion.

“Revenue is therefore growing almost twice as fast as interest costs,” the statement said.

According to the ministry, the interest-to-revenue ratio fell from 156 per cent in the first half of 2025 to 124 per cent in the first half of 2026, while the gap between interest payments and revenue narrowed from ₦2 trillion to ₦1.5 trillion.

It also argued that a half-year assessment does not provide a complete picture of Nigeria’s debt sustainability, noting that government revenue typically increases in the second half of the year because of the timing of certain tax payments.

“Debt sustainability is assessed on a full-year basis, not over six months,” the ministry stated.

Citing the World Bank report, it said Nigeria’s full-year 2026 debt service, covering both interest and principal repayments, was projected at 46 per cent of revenue.

The ministry further maintained that federal borrowing falls within limits approved by the National Assembly under the 2026 Appropriation Act and the approved borrowing plan, adding that borrowing complies with the Fiscal Responsibility Act 2007 and the Debt Management Office (Establishment) Act 2003.

The statement concluded by urging analysts and commentators to scrutinise public finances using comparable figures and appropriate context, saying: “Compare like with like, read figures in context, and seek clarification where the data is unclear.”