FG disputes World Bank’s 124% interest-to-revenue ratio, says figure is misleading

The federal government has disputed reports that interest payments on its loans reached 124 per cent of revenue in the first half of 2026, describing the figure as misleading because of differences in the revenue and debt obligations used in the calculation.

The Federal Ministry of Finance, in a statement issued in Abuja on Sunday, said the figure cited in the World Bank’s October 2026 Nigeria Development Update did not provide a complete picture of the government’s fiscal position.

According to the ministry, the interest payment figure includes debts serviced by the Federal Government on behalf of other tiers of government, including external loans owed by states, while the revenue used in the calculation excludes some earnings of government agencies and enterprises yet to be remitted to the Treasury.

It argued that comparing such debt obligations with federal revenue alone overstated the ratio because the figures did not cover the same level of government.

The ministry also said government revenue typically increased in the second half of the year because of the statutory timing of certain tax payments, making a six-month comparison an incomplete measure of fiscal performance.

It cited the 2025 figures, saying the debt-service-to-revenue ratio stood at 156 per cent in the first half of that year but fell below 60 per cent for the full year, compared with 97 per cent before the current administration’s reforms.

The ministry maintained that the figures for the first half of 2026 also showed an improvement in revenue generation relative to interest costs.

It said 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.