The Federal Ministry of Finance has disputed a claim that the Federal Government’s interest payments reached 124 per cent of its revenue within the first half of 2026, describing the determine as deceptive.
The ministry mentioned current evaluation and public commentary, which cited the World Bank’s October 2026 Nigeria Development Update, in contrast mismatched interest figures towards an incomplete revenue base.
In an announcement launched on Sunday, the ministry mentioned the 124 per cent interest calculation contains the debt serviced by the federal authorities on behalf of different tiers of authorities, together with exterior 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,” the assertion mentioned.
The ministry additionally asserted that the reported revenue is incomplete because it excludes the unbiased revenue earned by authorities companies and enterprises however not but 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,” it acknowledged.
The ministry defined that federal revenue rose by 72 per cent from ₦3.6 trillion within the first half of 2025 to ₦6.2 trillion within the corresponding interval of 2026.
Interest payments, nevertheless, rose by 38 per cent, from ₦5.6 trillion to ₦7.7 trillion over the identical interval, in accordance with the ministry.
“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 mentioned.
The ministry attributed the modifications to the present administration’s financial reforms, arguing that revenue is rising sooner than interest prices.
It argued that a six-month determine alone shouldn’t be used to judge the sustainability of authorities debt.
“Debt sustainability is assessed on a full-year basis, not over six months,” the assertion mentioned.
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Citing the World Bank report, the ministry mentioned Nigeria’s full-year 2026 debt service, overlaying each interest and principal, is projected at 46 per cent of revenue, and that this forecast is the suitable benchmark for assessing the nation’s debt-service burden.
The ministry famous that all borrowing falls throughout the limits permitted by the National Assembly underneath the 2026 Appropriation Act and the permitted borrowing plan, in compliance with the Fiscal Responsibility Act 2007 and the Debt Management Office (Establishment) Act 2003.
“We encourage analysts and commentators to apply the same rigour they seek to hold the government to: compare like with like, read figures in context, and seek clarification where the data is unclear,” the ministry mentioned.
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